The Dangote Group and the Africa Finance Corporation (AFC) have signed a $600 million financing agreement aimed at expanding fertiliser production in Nigeria and establishing a major manufacturing facility in Ethiopia, in a move expected to boost food security and agricultural productivity across Africa.
The financing package, secured by Greenview Fertiliser Corporation, Dangote’s Fertiliser Holding Company, will support the expansion of the Dangote Fertilizer Plant in Ibeju-Lekki, Lagos State, while also funding the construction of a new fertiliser plant in Ethiopia under a broader $7 billion expansion programme.
Under the expansion plan, Dangote Fertilizer’s production capacity in Nigeria will increase from three million metric tonnes per annum (MTPA) to nine million MTPA.
In addition, a new three-million-MTPA urea fertiliser plant will be established in Ethiopia, creating one of the largest fertiliser production platforms on the continent.
The investment is expected to improve agricultural productivity, strengthen supply chains, enhance food security and position Africa as a major player in the global fertiliser market.
The Africa Finance Corporation said the latest financing agreement aligns with its commitment to supporting transformative industrial projects capable of delivering long-term economic benefits.
According to the corporation, Africa possesses abundant natural gas reserves and nearly one-quarter of the world’s uncultivated arable land, yet the continent remains heavily dependent on imported fertilisers.
AFC noted that expanding local production is critical to achieving food security and reducing reliance on imports.
The corporation previously acted as Co-Coordinating Bank for the $3 billion syndicated financing package for the Dangote Refinery and recently received full repayment of its initial $300 million senior term loan to Dangote Industries Limited, which supported the refinery during its development stage.
Commenting on the agreement, President of Dangote Group, Aliko Dangote, said the investment would significantly increase export earnings and strengthen Nigeria’s foreign exchange position.
The billionaire businessman noted that the expansion would further consolidate the company’s position as one of the leading fertiliser producers globally.
President and Chief Executive Officer of AFC, Samaila Zubairu, described the transaction as part of the corporation’s strategy to channel capital into projects with far-reaching developmental impact across Africa.
He said the financing underscores AFC’s commitment to supporting industries capable of transforming economies and creating sustainable growth opportunities.
The latest partnership comes amid growing efforts to enhance Africa’s agricultural resilience and reduce dependence on imported fertiliser products.
With the expansion of the Ibeju-Lekki facility and the development of a new plant in Ethiopia, the Dangote Group is expected to play a major role in strengthening food production and improving fertiliser supply across the continent.
