en.Wedoany.com Reported - Dangote Group plans to achieve annual revenue of over $4 billion from fertilizer exports within the next three years. The group has secured a $600 million loan facility from the Africa Finance Corporation (AFC) to support the expansion of fertilizer production capacity in Nigeria and the construction of a new plant in Ethiopia.
The expansion plan includes increasing the annual urea fertilizer production capacity in Nigeria from 3 million metric tons per annum (MTPA) to 9 million MTPA, while adding a new 3 million MTPA urea plant in Ethiopia. This project is part of Dangote Group's total $7 billion fertilizer expansion plan, aimed at achieving self-sufficiency in fertilizer production in Africa and surpassing global competitors in output.
Aliko Dangote, President of Dangote Group, stated that the expansion will generate substantial foreign exchange earnings for Nigeria. He noted that this investment will enable the company to achieve over $4 billion in annual fertilizer exports within the next three years, representing a significant contribution to Nigeria's foreign exchange revenue and underscoring the company's commitment to national economic growth. He also emphasized that the company's growth vision is not pursued in isolation but in collaboration with strategic partners such as the Africa Finance Corporation and other institutions dedicated to Africa's progress.
The financing provided by the Africa Finance Corporation to GreenView Fertiliser Corporation and Dangote Fertiliser Holding Company will be partially used for the expansion of urea production capacity in Nigeria and the construction of a new fertilizer plant in Ethiopia. This loan highlights the Africa Finance Corporation's confidence in Dangote Group's vision of driving industrial growth and agricultural transformation through large-scale infrastructure investments. Previously, the Africa Finance Corporation has a track record of successful investments and exits in Africa, covering projects in renewable energy, port infrastructure, digital connectivity, and industrial platforms.
The funds will primarily support the expansion of the Dangote Fertiliser Plant in Ibeju-Lekki, Lagos, which is one of the world's largest granular urea fertilizer complexes. The expansion is expected to significantly increase production capacity, improve supply chain efficiency, and ensure continuous access to high-quality fertilizers for farmers across the African continent. This move is expected to strengthen food security in Nigeria and Africa, enhance agricultural productivity, reduce dependence on imported fertilizers, help stabilize prices, and increase crop yields, thereby bolstering Africa's overall food security framework.
Samaila Zubairu, President and Chief Executive Officer of the Africa Finance Corporation, emphasized the strategic significance of this transaction. He stated that this deal reflects the Africa Finance Corporation's capital recycling model, where, following the successful repayment of a previous investment in Dangote Industries Limited, the corporation is doubling down and reinvesting capital into the next growth phase of the Dangote Group. By supporting the expansion of the Dangote Fertiliser Plant, the Africa Finance Corporation is backing a proven African industrial leader, with investments that will strengthen food security, reduce import dependence, and create long-term economic value across the continent.
The Dangote Fertiliser Plant currently meets domestic demand while exporting to markets in Africa, Europe, and the Americas, generating foreign exchange revenue for Nigeria. With this new round of expansion, the company is poised to consolidate its leading position in the global fertilizer market while enhancing Africa's agricultural and economic resilience.
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