Onome Amuge
Dangote Group is spearheading a major push in African industrialisation through a new wave of fertiliser investments poised to reshape the continent’s role in global agricultural supply chains. The conglomerate recently unveiled technical partnerships aimed at expanding urea production in Nigeria and establishing a new fertilizer plant in Ethiopia.Â
Through partnerships with Topsoe, Saipem, ThyssenKrupp UFT, and Engineers India Limited (EIL), Dangote Group plans to increase its Nigerian urea output from three million metric tonnes to nine million metric tonnes annually. The expansion will add four new production trains to the two currently operating at its Lekki facility, potentially positioning Nigeria as one of the world’s largest single-location urea producers.
The Group also broke ground on a $2.5 billion fertiliser facility in Gode, Ethiopia, designed to produce three million metric tons annually. The East African plant not only diversifies Dangote’s footprint but also aligns with regional ambitions to strengthen domestic agricultural productivity and food security, a critical concern in a continent where almost one-third of arable land remains underutilised.
Experts point to the strategic selection of technology partners as an indicator that Dangote is aiming to meet global standards, not just regional demand. Topsoe will provide ammonia technology licensing and process design for six ammonia plants (four in Nigeria and two in Ethiopia), leveraging Denmark-based engineering expertise to boost efficiency and reduce environmental impact. Saipem will supply the urea melt technology across all six facilities, while ThyssenKrupp’s UFT division will deliver granulation technology to produce high-quality urea granules suitable for export. Engineers India Limited has been appointed project management and EPCM consultant for the four Nigerian plants, coordinating the complex web of engineering, procurement, and construction activities.
The timing of the expansion is considered noteworthy. Global fertiliser markets have been volatile over the past five years, with energy price fluctuations and trade disruptions reshaping supply chains. Africa, rich in natural gas and minerals required for fertiliser production, has remained largely on the periphery. Dangote’s new capacity is projected to change that dynamic, enabling Nigeria and Ethiopia to supply regional markets more competitively while potentially entering export markets in South Asia, Latin America, and the Middle East.
Beyond output, the project promises substantial local economic benefits. Thousands of direct and indirect jobs are expected to be created, with spillover effects across agricultural value chains, including distribution, logistics, and smallholder farm productivity. For Ethiopia, the Gode plant represents a significant step toward industrial diversification and resilience in the face of fluctuating global commodity prices.
