Dangote plans IPO for fertilizer unit in 2025, eyes global leadership by overtaking Qatar in output within four years.
Fertilizer plant runs at full capacity, boosts Nigerias food security and forex earnings, generating 400M in foreign currency annually.
20 billion refinery hits 500,000 bpd, supplies fuel to Africa, Europe, and U.S., with full capacity expected by mid-2025.
Africas richest man, Aliko Dangote, revealed over the weekend his plans to list Dangote Fertilizer Limited, the continents largest granulated urea fertilizer complex. After that, he intends to list his massive 20 billion refinery.
When asked about the possible listings of his refinery or other Dangote Group businesses, Dangote said , Yes, definitely. Thats the right thing to do. We plan to start this year with the fertilizer business, then move on to the refinery. Previously, pre-test companies couldnt be listed, but the President approved changes under the renewed SEC code, so that hurdle has been cleared. Well take it one step at a time. Fertilizer is no small business either. Our goal is to become the largest fertilizer company in the world within four years, maybe even sooner, surpassing Qatar.
Nigerian fertilizer plant feeds the futureDangote Fertilizer is a 2.5 billion facility spread over 500 hectares in Ibeju Lekki, Lagos State, Nigeria. It is Africas largest granulated urea fertilizer plant, with an annual production capacity of 3 million metric tonnes.
According to Bloomberg, the plant is valued at over 3 billion based on a net present value calculation assuming a 50 percent utilization rate. However, since launching three years ago, it has been running at full capacity to meet Nigerias fertilizer demand of 1.5 million tonnes annually, while lowering prices and helping to address food insecurity.
Since starting operations in March 2022, the plant has expanded its production to include several grades of fertilizer tailored to Africas diverse soils, crops, and climates. Fertilizer is crucial for agribusiness, and this facilitys output will help reduce food insecurity in Nigeria and position the country as a net food exporter. The plant will also ease Nigerias foreign exchange shortage and pressure on the naira by cutting fertilizer imports, generating over 400 million in foreign currency annually.