Nigeria’s industrial giant, Dangote Group, is aiming to earn a staggering $7 million daily from the export of urea-based fertilizer, following the successful launch of its $2.5 billion Dangote Fertiliser Plant in Lagos. Located in the Lekki Free Trade Zone, the facility is now Africa’s largest granulated urea fertilizer complex and among the top in the world.

With a full production capacity of 3 million metric tonnes annually, the plant has not only positioned Nigeria as a self-sufficient producer of fertilizer but also as a key player in the global fertilizer supply chain.

Global Export Ambitions Take Shape

Since becoming operational in March 2022, the plant has commenced exports to key agricultural markets including Brazil, India, the United States, and Mexico. These countries are major importers of urea-based fertilizers, especially amid the supply disruptions caused by the Russia-Ukraine conflict.

At an average global market price of about $500 per metric tonne, daily earnings from full-capacity exports could exceed $7 million, translating to more than $2.5 billion annually in potential foreign exchange inflows for Nigeria.

Fueling Production: 10-Year Gas Supply Deal

To ensure consistent production and mitigate energy supply risks, Dangote Fertiliser Limited signed a landmark gas supply agreement with the Shell Petroleum Development Company (SPDC) and its joint venture partners. Under this deal, SPDC will supply 100 million standard cubic feet of gas per day to the plant over a ten-year period.

This aligns with Nigeria’s “Decade of Gas” initiative, which prioritizes natural gas as a transitional energy source and a driver of industrialization.

Economic Impact: Jobs, Trade, and Industrialization

The fertiliser plant is already generating massive economic benefits:

• Thousands of direct and indirect jobs have been created.

• Nigeria has reduced its dependence on imported fertilisers.

• Farmers now have improved access to high-quality and affordable urea.

• The country is earning much-needed foreign exchange through exports.

During the commissioning ceremony, former President Muhammadu Buhari praised the plant’s potential to accelerate agricultural transformation, saying,

“It will reduce our dependence on fertiliser imports, create jobs on a massive scale, increase the inflow of foreign exchange, and accelerate economic growth.”

Training Over One Million Farmers Nationwide

Recognizing that fertiliser availability must be matched by effective usage, Dangote Fertiliser has launched an ambitious program to train over one million Nigerian farmers within three years. The training focuses on:

• Best practices in fertiliser application

• Soil testing and nutrient management

• Climate-smart agricultural techniques

This initiative is expected to boost crop yields, improve food security, and increase rural incomes across the country.

Expanding to West Africa and Beyond

In addition to its export markets, Dangote Fertiliser is strengthening its presence in West Africa. It has partnered with Translas Logistics Company Limited, a Ghana-based firm, to distribute Dangote fertilisers in Ghana, Côte d’Ivoire, Burkina Faso, and Togo. This move is especially timely, as many African countries are facing fertiliser shortages due to global supply chain disruptions.

Strategic Role in Food Security and Regional Development

The plant’s capacity and regional reach are expected to play a strategic role in addressing Africa’s food security challenges. By producing locally and exporting to nearby markets, Dangote Fertiliser is reducing the region’s vulnerability to international price shocks and supply bottlenecks.

Moreover, as other African countries seek to increase crop productivity and reduce reliance on expensive imports, Dangote’s facility positions Nigeria as a fertiliser hub for the continent.

Conclusion: A Landmark for Nigeria’s Industrial Ambitions

The success of the Dangote Fertiliser Plant is a significant milestone in Nigeria’s journey towards economic diversification and industrial transformation. With steady gas supply, growing export markets, and a strong farmer training program, the plant is expected to remain a major source of revenue, employment, and regional influence for years to come.

As the facility ramps up operations, all eyes are on how this mega-project will reshape Africa’s agricultural landscape, while solidifying Nigeria’s place as a global player in the fertiliser industry.

 

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