FILE: President of Dangote Group, Alhaji Aliko Dangote The Dangote Group says it has strengthened its strategic partnership with the Africa Finance Corporation with the signing of a $600m loan agreement to support the expansion of its fertiliser production capacity to boost food security across Nigeria and Africa.
In a statement on Monday, the Dangote Group said the loan facility to GreenView Fertiliser Corporation, the Dangote Fertiliser Holding Company, will partly finance the expansion of its urea fertiliser production capacity in Nigeria and the development of the plant in Ethiopia.
The investment, it was said, forms part of Dangote Group’s broader $7bn fertiliser expansion programme, which is expected to increase Dangote Fertiliser’s production capacity in Nigeria from three million metric tonnes per annum to 9 MTPA, while also supporting the development of a new 3 MTPA urea fertiliser plant in Ethiopia.
The programme is expected to materially expand Africa’s fertiliser production capacity, strengthen regional food security, support agricultural productivity, and reduce the continent’s dependence on imported fertiliser. “The financing underscores AFC’s continued confidence in Dangote Group’s vision to drive industrial growth and agricultural transformation through large-scale investments in critical infrastructure.
The facility will be deployed towards expanding the Dangote Fertiliser Plant, one of the largest granulated urea fertiliser complexes in the world, located in Ibeju-Lekki, Lagos State,” the company said. The expansion is expected to significantly scale up production capacity, enhance supply chain efficiency, and ensure the steady availability of high-quality fertilisers to farmers across Africa.
Related News Dangote unveils plans for Ondo industrial hub 11 years on, Edo family still searching for missing relative Two arrested over fake alcohol production in Anambra The statement added that the expansion will also help reduce dependency on fertiliser imports, stabilise prices, and improve agricultural yields, thereby strengthening the continent’s food security framework.
Speaking on the development, the President of Dangote Group, Aliko Dangote, said the expansion is expected to generate over $4bn annually in export earnings within the next three years. “By the next three years, we’ll be able to have an export of over $4bn worth of urea fertiliser, and I think it is a big contribution to the foreign exchange income of the country… You can continue to count on us.
When we say that we want to grow our group to $100bn by 2030, it doesn’t mean that we want to grow alone; we want to grow together, especially with the African Finance Corporation, among other notable institutions in Africa,” he said. Commenting on the transaction, Samaila Zubairu, President & CEO of Africa Finance Corporation, said, “This transaction demonstrates AFC’s capital recycling model in action.
Following the successful repayment of our earlier investment in Dangote Industries Limited, we are redeploying and doubling that capital into Dangote Group’s next phase of growth. “By supporting the expansion of Dangote Fertiliser, AFC is backing a proven African industrial champion whose investments will strengthen food security, reduce import dependence, and create long-term economic value across the continent.” The statement added that the Dangote Fertiliser Plant currently plays a pivotal role in meeting domestic demand while also exporting to international markets, generating foreign-exchange earnings for Nigeria.
With the planned expansion, the company aims further to consolidate its leadership in the global fertiliser market. In a statement on Monday, the Dangote Group said the loan facility to GreenView Fertiliser Corporation, the Dangote Fertiliser Holding Company, will partly finance the expansion of its urea fertiliser production capacity in Nigeria and the development of the plant in Ethiopia.