The Dangote Group has unveiled a massive expansion strategy. The conglomerate plans to triple its urea production capacity in Nigeria. Additionally, it will establish a major footprint in East Africa.
This move aims to position Nigeria as a global fertilizer hub. The group plans to ramp up annual domestic production from three million to nine million metric tonnes.
This strategy involves constructing new facilities. Furthermore, it integrates cutting-edge technology from global engineering giants.
Expanding the Lagos Complex
The expansion focuses on the Group’s existing fertilizer complex in Lagos. Currently, the facility operates two production trains. They churn out three million metric tonnes of urea annually.
Now, the site is set for a massive upgrade. Contractors will build four additional production trains under the new agreement.
This capacity boost targets surging demand. It aims to supply local farmers, agro-dealers, and international markets reliably.
New $2.5 Billion Plant in Ethiopia
Dangote is also looking beyond Nigeria’s borders. The Group is deepening its continental influence. Work has commenced on a $2.5 billion fertilizer project in Gode, Ethiopia.
This new facility will produce an additional three million metric tonnes of urea per year. The project serves a strategic purpose. It aims to bolster food security in East Africa and reduce reliance on imported inputs.
Strategic Technical Partnerships
Dangote has secured agreements to execute these projects. The Group signed deals with four leading global engineering firms.
These partners will provide critical infrastructure and licensing:
- Topsoe (Denmark): Will provide ammonia technology licensing for six plants.
- Saipem (Italy): Tasked with supplying technology for urea melt units.
- Thyssenkrupp/UFT (Germany): Will deliver advanced granulation technology.
- Engineers India Limited (India): Appointed as the project management consultant.
Boosting Food Security
The Dangote Group emphasized the importance of these collaborations. They are pivotal to Africa’s agricultural self-sufficiency.
By localizing production, the initiative solves chronic fertilizer shortages.
“These partnerships reflect Dangote Group’s commitment to delivering high-quality industrial assets,” the management stated.
They noted that the expansion will create jobs. Furthermore, it will support agricultural value chains across the continent.
A Global Powerhouse
Currently, Africa consumes less than 20 percent of required fertilizer. This is due to supply chain disruptions and high costs.
Dangote’s Lagos facility is already reversing this trend. It exports products to markets like Brazil, Mexico, and West Africa.
With this expansion, Nigeria is on track to become a top global producer. Consequently, it will strengthen global food production capacity amid geopolitical conflicts.
READ ALSO: Nigeria Braces for Famine as Terror and Hunger Spiral
