Africa’s richest man Aliko Dangote is hoping to clinch a portion of the U.S. and Brazilian fertilizer markets. At a virtual economic forum hosted by Qatar, the Nigerian billionaire said he has plans to export his products to the two countries.
Several weeks ago, Dangote launched a $2.5-billion fertilizer plant that produces three times more than local consumption.
Reuters reported the billionaire as saying: “Apart from meeting the domestic demand, we are going to be able to earn quite a lot of money exporting the goods to the South American countries.” Dangote added that the company plans to export its first shipment in late June or early July to Louisiana, while most of the exports will likely go to Brazil.
Africa’s most populous country, Nigeria’s annual fertilizer demand is estimated to be under 1 million tonnes. Meanwhile, the plant’s capacity is 3 million tonnes per year.
This puts the plant in a strong position to feed its primary market while also exporting products to all major economies in Sub-Saharan Africa.
Dangote’s plant is one of the world’s largest. It is located in the Lekki Free Trade Zone Area within his 650,000-barrel-per-day oil refinery.
Although the Dangote Oil Refinery has not yet commenced operation, the mogul said in March that production would start at the fertilizer plant in April. The announcement was made on March 20, while the billionaire showed the plants to Lagos State Governor Babajide Sanwo-Olu.
Nigeria accounts for 50 percent of the harvested land in West Africa.
The newly launched plant positions Dangote Group as a leading player in the Nigerian fertilizer sector, while giving it the power to influence the market price.