Is Increasing Inorganic Fertilizer Use in Sub-Saharan Africa a Profitable Proposition? Evidence from Nigeria

Inorganic fertilizer use across Sub-Saharan Africa is generally considered to be low. Yet, this belief is predicated on the assumption that it is profitable to use rates higher than currently observed. However, there is little rigorous empirical ev...

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Main Authors: Liverpool-Tasie, Lenis Saweda O., Omonona, Bolarin T., Sanou, Awa, Ogunleye, Wale
Format: Publications & Research
Language:English
en_US
Published: World Bank Group, Washington, DC 2015
Subjects:
BUS
FAO
Online Access:http://documents.worldbank.org/curated/en/2015/02/24048038/increasing-inorganic-fertilizer-use-sub-saharan-africa-profitable-proposition-evidence-nigeria
http://hdl.handle.net/10986/21589
id okr-10986-21589
recordtype oai_dc
spelling okr-10986-215892021-04-23T14:04:03Z Is Increasing Inorganic Fertilizer Use in Sub-Saharan Africa a Profitable Proposition? Evidence from Nigeria Liverpool-Tasie, Lenis Saweda O. Omonona, Bolarin T. Sanou, Awa Ogunleye, Wale AGRICULTURAL ECONOMICS AGRICULTURAL EXTENSION AGRICULTURAL GROWTH AGRICULTURAL INFORMATION AGRICULTURAL INTENSIFICATION AGRICULTURAL MARKETS AGRICULTURAL POLICY AGRICULTURAL PRACTICES AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL SECTOR AGRICULTURAL TRANSFORMATION AGRICULTURE AGRONOMY AVERAGE TRAVEL TIME BUS CARS CEREAL VARIETIES CEREALS CHEMICAL USE CLIMATE COFFEE COFFEE GROWERS COMMERCIAL FERTILIZER COMMERCIAL SEED COMMERCIALIZATION CORN COST OF TRANSPORTATION CROP CROP FAILURE CROP GROWTH CROP MANAGEMENT CROP MANAGEMENT PRACTICES CROP PRODUCTION CROP YIELD CROP YIELD RESPONSE CROP YIELDS CROPPING CROPPING PATTERNS CROPPING SYSTEMS CROPS CULTIVATION DRIVING ECOLOGICAL ZONE ECOLOGICAL ZONES ECONOMIES OF SCALE FAO FARM FARM ACTIVITIES FARM SIZE FARMER FARMERS FARMING FARMING SYSTEM FARMING SYSTEMS FARMS FERTILISER FERTILIZER FERTILIZER APPLICATION FERTILIZER DEVELOPMENT FERTILIZER PRICES FERTILIZER RESEARCH FERTILIZER SUBSIDIES FERTILIZER SUBSIDY FERTILIZER USE FERTILIZERS FIELD CROPS FOOD CRISIS FOOD CROPS FOOD GRAIN FOOD POLICY FOOD POLICY RES FOOD PRICES FOOD PRODUCTION FOOD PRODUCTS FOOD SECURITY GEODESY GRAIN MARKET GRAIN QUALITY GRAIN YIELD GRAZING GREEN REVOLUTION HABITAT HERBICIDES HIGH TRANSPORTATION HYBRID SEED IFPRI INTERCROPPING INTERNATIONAL FERTILIZER DEVELOPMENT CENTER INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE LABOR DEMAND LAND USE LEGUMES LEGUMINOUS CROPS LOCAL TRANSPORTATION MAIZE MAIZE FARMERS MAIZE PRODUCTION MAIZE YIELDS MANURE MILLET MIXED CROPPING NITROGEN NITROGEN FERTILIZATION NUTRIENT MANAGEMENT PESTICIDE PESTICIDES PLANTING POOR FARMERS POPULATION DENSITIES POPULATION DENSITY POULTRY PRODUCE PRODUCTION SYSTEM PRODUCTIVITY IMPROVEMENTS QUALITY SEED RICE RICE MILLS RICE PRODUCTION RICE YIELDS ROAD SEED SEED PRODUCTION SEED VARIETIES SEEDS SOIL CHARACTERISTICS SOIL FERTILITY SOIL QUALITY SOILS SORGHUM TRANSPORT TRANSPORT COSTS TRANSPORTATION COST TRANSPORTATION COSTS TREE CROPS TREES TROPICAL AGRICULTURE TRUE UREA VEGETABLES WEALTH WEED CONTROL Inorganic fertilizer use across Sub-Saharan Africa is generally considered to be low. Yet, this belief is predicated on the assumption that it is profitable to use rates higher than currently observed. However, there is little rigorous empirical evidence to support this notion. Using a nationally representative panel data set, and with due recognition of the role of risk and uncertainty, this paper empirically estimates the profitability of fertilizer use for maize production in Nigeria. The analysis finds that inorganic fertilizer use in Nigeria is not as low as conventional wisdom suggests. Low marginal physical product and high transportation costs significantly reduce the profitability of fertilizer use. The paper finds evidence that strategies to reduce transportation costs are likely to have a much larger effect on the profitability of fertilizer use than fertilizer subsidies. Apart from reduced transportation costs, other constraints such as timely access to the product; availability of complementary inputs such as improved seeds, irrigation, and credit; as well as good management practices are also necessary for sustained agricultural productivity improvements. 2015-03-11T20:14:00Z 2015-03-11T20:14:00Z 2015-02 http://documents.worldbank.org/curated/en/2015/02/24048038/increasing-inorganic-fertilizer-use-sub-saharan-africa-profitable-proposition-evidence-nigeria http://hdl.handle.net/10986/21589 English en_US Policy Research Working Paper;No. 7201 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Nigeria
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic AGRICULTURAL ECONOMICS
AGRICULTURAL EXTENSION
AGRICULTURAL GROWTH
AGRICULTURAL INFORMATION
AGRICULTURAL INTENSIFICATION
AGRICULTURAL MARKETS
AGRICULTURAL POLICY
AGRICULTURAL PRACTICES
AGRICULTURAL PRODUCTION
AGRICULTURAL PRODUCTIVITY
AGRICULTURAL SECTOR
AGRICULTURAL TRANSFORMATION
AGRICULTURE
AGRONOMY
AVERAGE TRAVEL TIME
BUS
CARS
CEREAL VARIETIES
CEREALS
CHEMICAL USE
CLIMATE
COFFEE
COFFEE GROWERS
COMMERCIAL FERTILIZER
COMMERCIAL SEED
COMMERCIALIZATION
CORN
COST OF TRANSPORTATION
CROP
CROP FAILURE
CROP GROWTH
CROP MANAGEMENT
CROP MANAGEMENT PRACTICES
CROP PRODUCTION
CROP YIELD
CROP YIELD RESPONSE
CROP YIELDS
CROPPING
CROPPING PATTERNS
CROPPING SYSTEMS
CROPS
CULTIVATION
DRIVING
ECOLOGICAL ZONE
ECOLOGICAL ZONES
ECONOMIES OF SCALE
FAO
FARM
FARM ACTIVITIES
FARM SIZE
FARMER
FARMERS
FARMING
FARMING SYSTEM
FARMING SYSTEMS
FARMS
FERTILISER
FERTILIZER
FERTILIZER APPLICATION
FERTILIZER DEVELOPMENT
FERTILIZER PRICES
FERTILIZER RESEARCH
FERTILIZER SUBSIDIES
FERTILIZER SUBSIDY
FERTILIZER USE
FERTILIZERS
FIELD CROPS
FOOD CRISIS
FOOD CROPS
FOOD GRAIN
FOOD POLICY
FOOD POLICY RES
FOOD PRICES
FOOD PRODUCTION
FOOD PRODUCTS
FOOD SECURITY
GEODESY
GRAIN MARKET
GRAIN QUALITY
GRAIN YIELD
GRAZING
GREEN REVOLUTION
HABITAT
HERBICIDES
HIGH TRANSPORTATION
HYBRID SEED
IFPRI
INTERCROPPING
INTERNATIONAL FERTILIZER DEVELOPMENT CENTER
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
LABOR DEMAND
LAND USE
LEGUMES
LEGUMINOUS CROPS
LOCAL TRANSPORTATION
MAIZE
MAIZE FARMERS
MAIZE PRODUCTION
MAIZE YIELDS
MANURE
MILLET
MIXED CROPPING
NITROGEN
NITROGEN FERTILIZATION
NUTRIENT MANAGEMENT
PESTICIDE
PESTICIDES
PLANTING
POOR FARMERS
POPULATION DENSITIES
POPULATION DENSITY
POULTRY
PRODUCE
PRODUCTION SYSTEM
PRODUCTIVITY IMPROVEMENTS
QUALITY SEED
RICE
RICE MILLS
RICE PRODUCTION
RICE YIELDS
ROAD
SEED
SEED PRODUCTION
SEED VARIETIES
SEEDS
SOIL CHARACTERISTICS
SOIL FERTILITY
SOIL QUALITY
SOILS
SORGHUM
TRANSPORT
TRANSPORT COSTS
TRANSPORTATION COST
TRANSPORTATION COSTS
TREE CROPS
TREES
TROPICAL AGRICULTURE
TRUE
UREA
VEGETABLES
WEALTH
WEED CONTROL
spellingShingle AGRICULTURAL ECONOMICS
AGRICULTURAL EXTENSION
AGRICULTURAL GROWTH
AGRICULTURAL INFORMATION
AGRICULTURAL INTENSIFICATION
AGRICULTURAL MARKETS
AGRICULTURAL POLICY
AGRICULTURAL PRACTICES
AGRICULTURAL PRODUCTION
AGRICULTURAL PRODUCTIVITY
AGRICULTURAL SECTOR
AGRICULTURAL TRANSFORMATION
AGRICULTURE
AGRONOMY
AVERAGE TRAVEL TIME
BUS
CARS
CEREAL VARIETIES
CEREALS
CHEMICAL USE
CLIMATE
COFFEE
COFFEE GROWERS
COMMERCIAL FERTILIZER
COMMERCIAL SEED
COMMERCIALIZATION
CORN
COST OF TRANSPORTATION
CROP
CROP FAILURE
CROP GROWTH
CROP MANAGEMENT
CROP MANAGEMENT PRACTICES
CROP PRODUCTION
CROP YIELD
CROP YIELD RESPONSE
CROP YIELDS
CROPPING
CROPPING PATTERNS
CROPPING SYSTEMS
CROPS
CULTIVATION
DRIVING
ECOLOGICAL ZONE
ECOLOGICAL ZONES
ECONOMIES OF SCALE
FAO
FARM
FARM ACTIVITIES
FARM SIZE
FARMER
FARMERS
FARMING
FARMING SYSTEM
FARMING SYSTEMS
FARMS
FERTILISER
FERTILIZER
FERTILIZER APPLICATION
FERTILIZER DEVELOPMENT
FERTILIZER PRICES
FERTILIZER RESEARCH
FERTILIZER SUBSIDIES
FERTILIZER SUBSIDY
FERTILIZER USE
FERTILIZERS
FIELD CROPS
FOOD CRISIS
FOOD CROPS
FOOD GRAIN
FOOD POLICY
FOOD POLICY RES
FOOD PRICES
FOOD PRODUCTION
FOOD PRODUCTS
FOOD SECURITY
GEODESY
GRAIN MARKET
GRAIN QUALITY
GRAIN YIELD
GRAZING
GREEN REVOLUTION
HABITAT
HERBICIDES
HIGH TRANSPORTATION
HYBRID SEED
IFPRI
INTERCROPPING
INTERNATIONAL FERTILIZER DEVELOPMENT CENTER
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
LABOR DEMAND
LAND USE
LEGUMES
LEGUMINOUS CROPS
LOCAL TRANSPORTATION
MAIZE
MAIZE FARMERS
MAIZE PRODUCTION
MAIZE YIELDS
MANURE
MILLET
MIXED CROPPING
NITROGEN
NITROGEN FERTILIZATION
NUTRIENT MANAGEMENT
PESTICIDE
PESTICIDES
PLANTING
POOR FARMERS
POPULATION DENSITIES
POPULATION DENSITY
POULTRY
PRODUCE
PRODUCTION SYSTEM
PRODUCTIVITY IMPROVEMENTS
QUALITY SEED
RICE
RICE MILLS
RICE PRODUCTION
RICE YIELDS
ROAD
SEED
SEED PRODUCTION
SEED VARIETIES
SEEDS
SOIL CHARACTERISTICS
SOIL FERTILITY
SOIL QUALITY
SOILS
SORGHUM
TRANSPORT
TRANSPORT COSTS
TRANSPORTATION COST
TRANSPORTATION COSTS
TREE CROPS
TREES
TROPICAL AGRICULTURE
TRUE
UREA
VEGETABLES
WEALTH
WEED CONTROL
Liverpool-Tasie, Lenis Saweda O.
Omonona, Bolarin T.
Sanou, Awa
Ogunleye, Wale
Is Increasing Inorganic Fertilizer Use in Sub-Saharan Africa a Profitable Proposition? Evidence from Nigeria
geographic_facet Africa
Nigeria
relation Policy Research Working Paper;No. 7201
description Inorganic fertilizer use across Sub-Saharan Africa is generally considered to be low. Yet, this belief is predicated on the assumption that it is profitable to use rates higher than currently observed. However, there is little rigorous empirical evidence to support this notion. Using a nationally representative panel data set, and with due recognition of the role of risk and uncertainty, this paper empirically estimates the profitability of fertilizer use for maize production in Nigeria. The analysis finds that inorganic fertilizer use in Nigeria is not as low as conventional wisdom suggests. Low marginal physical product and high transportation costs significantly reduce the profitability of fertilizer use. The paper finds evidence that strategies to reduce transportation costs are likely to have a much larger effect on the profitability of fertilizer use than fertilizer subsidies. Apart from reduced transportation costs, other constraints such as timely access to the product; availability of complementary inputs such as improved seeds, irrigation, and credit; as well as good management practices are also necessary for sustained agricultural productivity improvements.
format Publications & Research
author Liverpool-Tasie, Lenis Saweda O.
Omonona, Bolarin T.
Sanou, Awa
Ogunleye, Wale
author_facet Liverpool-Tasie, Lenis Saweda O.
Omonona, Bolarin T.
Sanou, Awa
Ogunleye, Wale
author_sort Liverpool-Tasie, Lenis Saweda O.
title Is Increasing Inorganic Fertilizer Use in Sub-Saharan Africa a Profitable Proposition? Evidence from Nigeria
title_short Is Increasing Inorganic Fertilizer Use in Sub-Saharan Africa a Profitable Proposition? Evidence from Nigeria
title_full Is Increasing Inorganic Fertilizer Use in Sub-Saharan Africa a Profitable Proposition? Evidence from Nigeria
title_fullStr Is Increasing Inorganic Fertilizer Use in Sub-Saharan Africa a Profitable Proposition? Evidence from Nigeria
title_full_unstemmed Is Increasing Inorganic Fertilizer Use in Sub-Saharan Africa a Profitable Proposition? Evidence from Nigeria
title_sort is increasing inorganic fertilizer use in sub-saharan africa a profitable proposition? evidence from nigeria
publisher World Bank Group, Washington, DC
publishDate 2015
url http://documents.worldbank.org/curated/en/2015/02/24048038/increasing-inorganic-fertilizer-use-sub-saharan-africa-profitable-proposition-evidence-nigeria
http://hdl.handle.net/10986/21589
_version_ 1764448700260679680