Fertilizer subsidy in Nigeria is staged towards making fertilizer available to small farmers at affordable prices. Unfortunately, the trend of leadership in the country has led to inconsistencies and instability. The gains are also not widely spread among the targeted beneficiaries hence, a negative implication on the increased food production programme. The objective of the study was to reveal the issues associated with defectiveness in fertilizer subsidy implementation in Nigeria. Secondary data on annual budgetary allocations to fertilizer subsidy, quantity imported and consumed, quantity requested and supplied to the36 States over years were utilized. Key informant interviews were also conducted among selected stakeholders as complementary data. Budgetary allocated to fertilizer subsidy had declined over years. A very few states had more than 50% of the total subsidy between 2001 and 2010. Fifteen and 21 States had less than the National average of 18.86kg/ha and 14.72Kg/farmer respectively for the same period. Quantity of fertilizer received in previous year and area planted determined the quantity of subsidized fertilizer that a state received. The farmers emphasized the existence of parallel Elite {urban} farmers group and other competitors that denied them of adequate access to the subsidized fertilizer. The farmers also submitted that members of ruling party gained more access to subsidized fertilizers. Government involvement in procurement and distribution of fertilizer should be redefined.