The Dangote Group has strengthened its strategic partnership with the Africa Finance Corporation (AFC) with the signing of a $600 million loan agreement to support the expansion of its fertiliser production capacity, in a major boost to food security across Nigeria and the African continent.
A statement by the company said the loan facility to GreenView Fertilizer Corporation (Greenview), the Dangote Fertlizer Holding Company will part-finance the expansion of its urea fertiliser production capacity in Nigeria and the development of the plant in Ethiopia.
The investment forms part of Dangote Group’s broader US$7 billion fertilizer expansion programme, which is expected to increase Dangote Fertilizer’s production capacity in Nigeria from 3 million metric tonnes per annum (“MTPA”) to 9 MTPA, while also supporting the development of a new 3 MTPA urea fertilizer 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 Fertilizer Plant, one of the largest granulated urea fertilizer complexes in the world, located in Ibeju-Lekki, Lagos State. “This expansion is expected to significantly scale up production capacity, enhance supply chain efficiency, and ensure the steady availability of high-quality fertilizers to farmers across Africa.
It will also help reduce dependency on fertilizer imports, stabilize prices, and improve agricultural yields, thereby strengthening the continent’s food security framework”, the statement added. Speaking on the development, President of Dangote Group, Aliko Dangote, said the expansion is expected to generate over $4 billion annually in export earnings within the next three years.
“What he’s actually given us this money for is a company where, by the next three years, we’ll be able to have an export of over $4 billion worth of urea fertilizer, 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 $100 billion by 2030, it doesn’t mean that we want to grow alone; we want to grow together, especially with African Finance Corporation among other notable institutions in Africa” READ ALSO: Nigeria’s Inflation Rises To 15.93% In May 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 Fertilizer, 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 Dangote Fertilizer Plant currently plays a pivotal role in meeting domestic demand while also exporting to international markets, generating foreign exchange earnings for Nigeria.