Dangote Secures $600M Loan for Fertilizer Expansion

Dangote Group has secured a $600 million loan from Africa Finance Corporation (AFC) to expand its fertilizer production operations. This move is expected to generate $4 billion in annual foreign exchange earnings for Nigeria through fertilizer exports.

The funding will partly finance the expansion of Dangote Fertilizer's urea production capacity in Nigeria and the development of a new fertilizer plant in Ethiopia. This investment is part of Dangote Group's broader $7 billion fertilizer expansion program aimed at significantly increasing Africa's fertilizer production capacity and strengthening food security across the continent.

The production capacity at the Dangote Fertilizer plant in Ibeju Lekki, Lagos, will rise from 3 million metric tons per annum (mtpa) to 9 mtpa, with an additional 3 mtpa urea fertilizer plant to be established in Ethiopia. Aliko Dangote, President of Dangote Group, emphasized the project's significant contribution to Nigeria's foreign exchange earnings.

Samaila Zubairu, AFC President and CEO, noted that the deal reflects AFC's confidence in Dangote Group's industrial vision and commitment to supporting large-scale projects that drive economic development.