AFC, Dangote Group Seal $600m Deal to Expand Fertiliser Capacity, Target $4bn Annual Export Boost

 AFC, Dangote Group Seal $600m Deal to Expand Fertiliser Capacity, Target $4bn Annual Export Boost

The Africa Finance Corporation (AFC) and the Dangote Group have signed a $600 million loan agreement to accelerate the expansion of fertilizer production in Nigeria and Ethiopia, in a move expected to strengthen food security across Africa and significantly boost foreign exchange earnings for Nigeria.

The financing package will support GreenView Fertilizer Corporation, the Dangote Fertilizer Holding Company, as part of a broader $7 billion expansion programme aimed at scaling up production capacity and deepening regional agricultural value chains.

Under the expansion plan, Dangote Fertilizer’s production capacity in Nigeria is projected to rise from 3 million metric tonnes per annum (MTPA) to 9 million MTPA. The initiative also includes the development of a new 3 MTPA urea fertilizer plant in Ethiopia, further extending the group’s industrial footprint across the continent.

The Dangote Fertilizer Plant, located in Ibeju-Lekki, Lagos State, is expected to benefit significantly from the investment, with improvements in production efficiency, supply chain reliability, and output capacity. The expansion is also aimed at reducing Africa’s reliance on imported fertilizers, stabilising prices, and improving agricultural productivity.

Speaking on the development, President of Dangote Group, Aliko Dangote, said the expansion would position the company for substantial export growth, projecting over $4 billion in annual urea fertilizer exports within the next three years. He added that the growth strategy is designed to benefit both the company and the wider African economy through increased foreign exchange inflows.

According to him, the partnership reflects a broader vision of shared industrial growth, noting that collaboration with institutions such as AFC remains central to the group’s long-term expansion plans.

AFC President and CEO, Samaila Zubairu, described the deal as a demonstration of the corporation’s capital recycling strategy, explaining that proceeds from earlier investments in Dangote Industries Limited were being reinvested into the group’s next phase of growth.

He said the financing aligns with AFC’s mandate to support African industrial champions, enhance food security, reduce import dependence, and generate sustainable economic value across the continent.

The Dangote Fertilizer Plant currently serves both domestic and international markets, contributing to Nigeria’s foreign exchange earnings. With the new expansion, the company is expected to further consolidate its position as a major global player in urea fertilizer production.