Table of Contents
Key Points
- Aliko Dangote plans to scale up production at his Lagos-based fertilizer plant to meet Africa’s growing demand and reduce import reliance.
- Dangote says Africa can become self-sufficient in fertilizer within 40 months, easing food production pressures and foreign exchange constraints.
- A potential Nigerian Exchange listing could unlock new capital as the plant operates at just half its total production capacity.
Africa’s richest man, Aliko Dangote, has announced plans to expand his $3 billion fertilizer plant — Dangote Fertilizer Limited — as part of a wider effort to help the continent become self-sufficient in fertilizer production and reduce the high costs of imports. He made the announcement during the annual Afreximbank meeting held in Abuja, Nigeria’s capital.
Dangote plans major fertilizer expansion
Dangote, who heads the Dangote Group — Africa’s most diversified industrial and manufacturing conglomerate — and is worth $23.3 billion according to Forbes, said the expansion will help meet Africa’s growing demand for fertilizer over the next 40 months.
He noted that the continent currently imports more than six million metric tons of fertilizer each year, a burden that’s made it harder for many countries to grow enough food, especially given challenging farming conditions.
“In the next 40 months, Africa will not import fertilizer from anywhere,” he said. “We’re moving fast. I want Dangote to be the biggest producer of urea in the world — bigger than Qatar. Just give me 40 months.” He added that increasing local production would ease the pressure on foreign exchange, a persistent challenge in Nigeria due to the weak naira.
NGX listing may reshape sector
This announcement comes at a time when Dangote Fertilizer Limited is preparing for a potential listing on the Nigerian Exchange (NGX), which could value the company at more than $3 billion. The plant, located on a 500-hectare site in Ibeju Lekki, Lagos, is already the largest of its kind in Africa. But for Dangote, it’s never just been about size or valuation. His goal has long been to rebuild domestic industries and reduce Africa’s dependence on imports.
The facility has the capacity to produce up to 3 million metric tonnes of urea each year, twice what Nigeria currently needs. That extra capacity is expected to lower prices for local farmers, allow for customized blends tailored to specific soil needs, and open up export opportunities across the region. In short, it’s about creating a more self-reliant agricultural sector — not just for Nigeria, but for Africa as a whole.
Half-capacity valuation signals expansion room
Bloomberg reports that the plant’s current valuation of $3.02 billion assumes it’s running at just 50 percent of its capacity. That leaves room for significant growth. A successful listing could bring in fresh investment, helping Dangote ramp up output, improve distribution networks, and extend exports beyond the continent.
