Dangote Industries Limited, the conglomerate helmed by Africa’s wealthiest man, Aliko Dangote, is embarking on an aggressive expansion drive, planning to more than double the production capacity of its fertilizer complex. The move is aimed at cementing Nigeria’s self-sufficiency in crop nutrients while positioning the group as a major supplier across the African continent.
The ambitious blueprint was recently unveiled by Aliyu Suleiman, chief strategy officer at Dangote Industries Ltd., during an industry event in Abuja. “There’s a plan to more than double the fertilizer production capacity and to also invest in other areas of fertilizer, so that all the fertilizer needs of Nigeria and other African countries can be met by the group,” Suleiman stated.
The $2.5 billion Dangote Fertilizer plant, inaugurated in 2022, is currently Africa’s largest granulated urea fertilizer complex, boasting an installed capacity of three million tonnes per annum. Doubling this output would position the facility to produce six million tonnes, a volume capable of fundamentally reshaping agricultural supply chains across West and Central Africa.
This expansion comes as the group prepares for two highly anticipated market listings. Last month, Aliko Dangote himself confirmed plans to list the Nigerian crude oil refinery by the end of 2026, following the listing of the urea plant this year. These initial public offerings are expected to unlock more capital and provide a clearer valuation for the conglomerate’s rapidly diversifying portfolio.
“The demand for fertilizer across Africa is immense and largely unmet. By expanding its capacity, Dangote is not just looking at the Nigerian market; they are aiming to capture a significant share of the regional market, leveraging Nigeria’s natural gas reserves for competitive production,”noted Aminu Ibrahim, an agricultural economist based in Abuja.
Africa’s agricultural sector is poised for substantial growth, driven by increasing populations and efforts to modernise farming practices. According to analysts, a reliable, locally sourced supply of affordable fertilizer could be a game-changer for many African nations, currently prone to volatile international prices and complex logistics. Dangote’s expansion aligns with broader continental initiatives like the African Continental Free Trade Area (AfCFTA), which seeks to boost intra-African trade and industrialisation.
Furthermore, the group intends to continue its investment in petrochemicals, a natural synergy with both the refinery and fertilizer operations. The production of polypropylene and other derivatives from the refinery’s outputs creates opportunities for further value addition and diversification into plastics and other industrial inputs.
The impending listings of both the urea plant and the refinery by late 2026) are highly anticipated events for Nigeria’s capital markets and international investors. The refinery alone represents a milestone asset, and its listing could be one of the largest on the Nigerian Exchange Limited (NGX).
However, analysts will be closely scrutinising the valuations, governance structures, and dividend policies of the newly listed entities. The scale of these assets and their strategic importance to Nigeria mean that their performance will be closely watched by both domestic and international institutional investors. Analysts argue that the success of these listings will also hinge on maintaining a stable macroeconomic environment in Nigeria, particularly concerning foreign exchange liquidity and policy consistency.
1.1K
