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Aliko Dangote, Africa’s richest man, launched this week what can be described as the continent’s largest granulated urea fertilizer complex in an effort to meet Nigeria’s 1.5 million tonnes of fertilizer use per year, lower fertilizer prices, and address food insecurity in the country.
According to Bloomberg, Dangote derived a total wealth of $5.15 billion from the $2.5-billion fertilizer complex built to meet Nigeria’s need for fertilizer, which is a critical component of establishing food sufficiency for Africa’s most populous country.
The addition of the net value of the Lagos-based fertilizer plant to Dangote’s personal wealth pushed his net worth above $20 billion, making him the world’s 80th richest man.
The African billionaire’s net worth has increased by more than $890 million to $20 billion since the start of the year, thanks to an uptick in the market value of his 86-percent stake in Dangote Cement Plc.
The Dangote Fertilizer Plant, which Nigerian President Muhammadu Buhari inaugurated on Tuesday, comes at a crucial moment, as Russia’s invasion of Ukraine has driven up prices and caused global food shortages, with Russia and Ukraine being major suppliers of urea, potash and phosphate, all of which are key components of fertilizers.
According to the country’s president, the 3 million tonnes of fertilizer that will be produced annually by the $2.5-billion plant will alleviate food insecurity in the country and turn Nigeria not only into a net exporter of fertilizer but also a net exporter of food to the rest of the world.
Nigeria’s Central Bank Governor Godwin Emefiele stated that the fertilizer plant is perfectly aligned with the current administration’s diversification agenda, adding that it will play a key role in transitioning the country from a net importer of the commodity to self-sufficiency.
Financial and economic experts believe that the fertilizer plant’s commissioning will significantly help alleviate Nigeria’s forex scarcity as well as pressure on the naira’s value, as it will reduce the country’s fertilizer imports and generate more than $400 million in foreign currency annually.
Following the initial phase of operation, the fertilizer complex’s capacity will be expanded to produce several grades of fertilizer to meet the African continent’s soil, crop and climate-specific requirements, as fertilizer is critical for agribusiness.
