The Dangote Group and the Africa Finance Corporation (AFC) have strengthened their strategic partnership with the signing of a $600 million loan agreement to support the expansion of fertilizer production capacity in Nigeria and Ethiopia, a development expected to bolster food security across Africa.
The loan facility, extended to GreenView Fertilizer Corporation, the holding company of Dangote Fertilizer, will partly finance the expansion of urea fertilizer production in Nigeria and the development of a new fertilizer plant in Ethiopia.
The investment is part of Dangote Group’s broader $7 billion fertilizer expansion programme aimed at significantly increasing fertilizer production on the continent. Under the initiative, Dangote Fertilizer’s production capacity in Nigeria is expected to rise from 3 million metric tonnes per annum (MTPA) to 9 MTPA, while a new 3 MTPA urea fertilizer plant will be developed in Ethiopia.
The expansion programme is projected to substantially increase Africa’s fertilizer output, improve agricultural productivity, strengthen regional food security and reduce dependence on imported fertilizer.
The financing also highlights AFC’s confidence in the Dangote Group’s industrialisation agenda and its commitment to supporting large-scale investments that drive economic growth and agricultural transformation across the continent.
According to the companies, the facility will be deployed towards expanding the Dangote Fertilizer Plant in Ibeju-Lekki, Lagos State, one of the world’s largest granulated urea fertilizer complexes.
The expansion is expected to boost production capacity, improve supply chain efficiency and ensure a more reliable supply of high-quality fertilizer products to farmers across Africa. It is also anticipated to reduce fertilizer imports, stabilise prices and enhance crop yields, thereby strengthening Africa’s food security framework.
Speaking on the development, President of Dangote Group, Aliko Dangote, said the expansion project is expected to generate more than $4 billion annually in export earnings within the next three years.
“What he’s actually given us this money for is a company whereby, in the next three years, we will be able to have exports of over $4 billion worth of urea fertilizer, and I think it is a big contribution to the foreign exchange income of the country,” Dangote stated.
He added that the Group’s ambition to grow into a $100 billion enterprise by 2030 is anchored on strategic partnerships with African institutions.
“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 and other notable institutions in Africa,” he said.
Commenting on the transaction, AFC President and Chief Executive Officer, Samaila Zubairu, described the deal as a demonstration of the Corporation’s capital recycling strategy.
“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,” Zubairu said.
He noted that AFC’s support for the expansion of Dangote Fertilizer reflects its confidence in the company’s ability to drive industrial development while creating long-term economic value for Africa.
“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,” he added.
The Dangote Fertilizer Plant currently plays a key role in meeting Nigeria’s domestic fertilizer requirements while exporting to international markets and generating valuable foreign exchange earnings. With the planned expansion, the company is expected to further consolidate its position as one of the leading players in the global fertilizer industry while supporting Africa’s agricultural development and food security objectives.
