Nigeria’s deal with Russia, involving trade in potash, has been hit by US sanctions, as President Muhammadu Buhari’s administration is forced to trade with Canada.
The Russian government and Nigeria had signed a potash trade agreement in 2019 to import potash from Uralchem, a Russian company. But ever since the global sanction against Vladimir Putin’s country for invading Ukraine, there has been a gap between supply and demand.
Potash is a feedstock for fertilizers, used to resist disease, promote plant growth, conserve water and support crop yield. Its use is also expanding outside of farmland, with manufacturers introducing potash for the production of pharmaceuticals, detergents, ceramics, as well as alternatives to de-icing salt.
The biggest producers are Canada, Russia, Belarus, China and Israel. In 2019, the top three companies accounted for 79% of potash traded globally.
How the sanction affects Nigeria
Before the sanctions, which include blocking international trade, Nigeria usually received about five shipments from Russia, but its inability to import from Putin’s country forced the government to trade with Canada.
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According to a Reuters report on Tuesday, Nigeria has imported three shipments of potash, as the government tries to readjust to the global sanction against Russia. The head of the Nigeria Sovereign Investment Authority…