Abstract
Inorganic fertilizer use across Sub-Saharan Africa is generally considered to be low. Yet, the notion that fertilizer use is too low is predicated on the assumption that it is profitable to use rates higher than currently observed. There is, however, limited empirical evidence to support this. Using a nationally representative panel dataset, this paper empirically estimates the profitability of fertilizer use for maize production in Nigeria. We find that 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. Apart from reduced transportation costs, other constraints such as soil quality, timely access to the product, and 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.
Highlights
Inorganic fertilizer use is considered low in Africa and many reasons have been cited to explain this
We explored the case when the transportation cost per kg applied to the market price of fertilizer for each farmer was their expressed transportation cost divided by 50 kgs and our main findings about high transport costs are maintained
This paper looked at the effect of nitrogen application on maize production across the main maize farming system in Nigeria
Summary
Inorganic fertilizer use is considered low in Africa and many reasons have been cited to explain this. The Nigeria Living Standard Measurement Study-Integrated Survey on Agriculture (LSMS-ISA) dataset provides a unique opportunity to explore the profitability of fertilizer use in Nigeria It is a nationally representative panel dataset rich with detailed agricultural information at the plot level. While various studies have explored the yield response of fertilizer in crop production, very few address the fact that there are likely unobserved characteristics that affect fertilizer application rates that affect yields (Offodile et al, 2010; Akighir and Shabu, 2011; Adedeji et al, 2014). This paper uses the LSMS-ISA with plot level information to provide empirical evidence on the profitability of fertilizer use for maize production across Nigeria, addressing the endogeneity of the input use decision.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
