The Dangote Group and Africa Finance Corporation (AFC) have deepened their strategic partnership by signing a $600 million financing agreement. This deal aims to expand fertiliser production capacity in Nigeria and establish a major manufacturing platform in Ethiopia, a move expected to bolster Africa’s food security and reduce dependence on imported agricultural inputs.
Financing Details and Expansion Plans
The financing facility, provided to Greenview Fertiliser Corporation (Greenview), Dangote’s fertiliser holding company, will support the expansion of the Dangote Fertilizer Plant in Ibeju-Lekki, Lagos State, and contribute to a new fertiliser facility in Ethiopia. This is part of a broader $7 billion expansion programme. The investment is projected to increase Dangote Fertilizer’s production capacity in Nigeria from three million metric tonnes per annum (MTPA) to nine million MTPA, while adding a three million MTPA urea fertiliser plant in Ethiopia.
The expansion programme is expected to strengthen regional food security, improve agricultural productivity, enhance supply chain efficiency, and position Africa as a stronger supplier to international fertiliser markets.
AFC's Commitment to Industrial Transformation
AFC stated that the transaction reflects its commitment to supporting transformative industrial projects capable of delivering long-term economic benefits across the continent. The corporation noted that despite vast natural gas reserves and nearly a quarter of the world’s uncultivated arable land, Africa remains heavily dependent on imported fertiliser, making local production expansion critical to agricultural resilience and food security.
The facility also underscores AFC’s continued confidence in Dangote Group’s industrialisation agenda, following previous collaborations. AFC had earlier served as Co-Coordinating Bank on 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.
Statements from Key Figures
President of Dangote Group, Aliko Dangote, said the investment would significantly boost export earnings while strengthening Nigeria’s foreign exchange position. “What he’s actually given us this money for is a company where by the next three years we’ll be able to have an export of over $4 billion worth of urea fertilizer, and I think it is a big contribution to the foreign exchange income of the country… You can continue to count on us. When we say that we want to grow our group to $100 billion by 2030, it doesn’t mean that we want to grow alone, we want to grow together, especially with African Finance Corporation among other notable institutions in Africa.”
Dangote also described the financing as another milestone in the long-standing relationship between both organisations. “This investment marks another important milestone in our long-standing partnership with AFC as we embark on the next phase of Dangote Fertilizer’s growth. Expanding our fertiliser production capacity in Nigeria and developing a new plant in Ethiopia will strengthen Africa’s food security, support agricultural productivity, and deepen the continent’s industrial base. AFC has consistently supported Dangote Group at critical stages of our growth, and its renewed commitment reflects confidence in our vision to build globally competitive African industrial platforms.”
President and Chief Executive Officer of AFC, Samaila Zubairu, said the financing demonstrates the corporation’s strategy of redeploying capital into projects capable of delivering significant developmental impact across Africa. “This transaction demonstrates AFC’s capital recycling model in action. Following the successful repayment of our earlier investment in Dangote Industries Limited, we are redeploying and doubling that capital into Dangote Group’s next phase of growth. By supporting the expansion of Dangote Fertilizer, AFC is backing a proven African industrial champion whose investments will strengthen food security, reduce import dependence, and create long-term economic value across the continent.”
Zubairu emphasised the critical timing of the fertiliser expansion. “The question before Africa is simple: how will we feed 2.5 billion people by 2050? Africa’s 1.5 billion people consume just 6 million tonnes of urea annually, compared to 40 million tonnes in India and 50 million tonnes in China, despite having similar-sized populations. Closing this productivity gap is essential to Africa’s food security. By supporting the development of the world’s largest fertiliser platform, AFC is helping build the foundation for Africa to feed itself, create productive jobs and strengthen our economic sovereignty. This is not just an investment in fertilizer production. It is evidence of the Africa we are building.”
Impact on Global Fertiliser Market
The Dangote Fertilizer Plant, regarded as one of the world’s largest granulated urea fertiliser complexes, currently supplies the domestic market while exporting to several international destinations, generating valuable foreign exchange earnings for Nigeria. With the planned expansion, the company is expected to further consolidate its position in the global fertiliser market while helping to stabilise fertiliser availability and prices across Africa.
According to the corporation, investments in industrial platforms, power infrastructure, ports and strategic transport corridors remain central to efforts aimed at increasing Africa’s capacity to produce, process and distribute essential goods locally while expanding exports to regional and global markets.
