Dangote secures $600m AFC loan to expand fertiliser production

The Dangote Group has secured a $600 million loan facility from the Africa Finance Corporation (AFC) to support a major expansion of its fertiliser production operations, a move expected to generate more than $4 billion annually in foreign exchange earnings for Nigeria through exports.

The financing, extended to GreenView Fertilizer Corporation, the holding company for Dangote Fertiliser, will partly fund the expansion of the company’s urea production capacity in Nigeria and the development of a new fertiliser plant in Ethiopia.

The investment forms part of Dangote Group’s broader $7 billion fertiliser expansion programme aimed at significantly increasing Africa’s fertiliser production capacity and strengthening food security across the continent.

Under the programme, production capacity at the Dangote Fertiliser Plant in Ibeju-Lekki, Lagos, will rise from 3 million metric tonnes per annum (MTPA) to 9 MTPA. In addition, a new 3 MTPA urea fertiliser plant will be established in Ethiopia.

The expansion is expected to boost fertiliser availability, improve agricultural productivity, reduce dependence on imports, and support regional food security efforts across Africa.

Speaking on the development, President of Dangote Group, Aliko Dangote, said the project would make a significant contribution to Nigeria’s foreign exchange earnings while advancing the company’s ambition to become a leading global fertiliser exporter.

“This investment positions us to deliver over $4 billion annually in fertiliser exports within the next three years. It represents a major contribution to Nigeria’s foreign exchange earnings and underscores our commitment to national economic growth,” Dangote said, according to a statement yesterday.

He added that the company’s growth strategy is built on strong partnerships with African institutions committed to the continent’s economic transformation.

The AFC said the transaction reflects its confidence in Dangote Group’s industrial vision and its commitment to supporting large-scale projects that drive economic development.

AFC President and Chief Executive Officer, Samaila Zubairu, noted that the deal demonstrates the corporation’s capital recycling model, following the successful repayment of an earlier investment in Dangote Industries Limited.

“By supporting the expansion of Dangote Fertilizer, AFC is backing a proven African industrial leader whose investments will strengthen food security, reduce import dependence, and create long-term economic value across the continent,” Zubairu said.

According to AFC, the funds will primarily support the ongoing expansion of the Dangote Fertiliser Plant, one of the world’s largest granulated urea fertiliser complexes.

The corporation said the project would enhance supply chain efficiency, ensure consistent availability of high-quality fertilisers, and contribute to price stability for farmers across Africa.

The Dangote Fertiliser Plant currently serves both domestic and international markets and has become a key source of foreign exchange earnings for Nigeria. With the planned expansion, the company is expected to further consolidate its position in the global fertiliser market while supporting Africa’s agricultural and economic resilience.

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