AFC to Provide $600 Million to Dangote for Fertiliser Projects

News in brief:

—AFC is supporting Dangote’s fertiliser expansion plans to increase Nigeria’s urea output from 3 million to 9 million metric tonnes annually.

—The investment aims to strengthen Africa’s fertiliser supply chain, reduce import dependence and improve food security.

The Africa Finance Corporation (AFC) has announced a $600 million financing facility for the Dangote Group to expand fertiliser production capacity in Nigeria and support the development of a new plant in Ethiopia.

Greenview Fertilizer Corp., Dangote’s fertiliser holding company, will provide the funding as part of efforts to increase Africa’s domestic fertiliser supply and reduce dependence on imports.

AFC said the financing will support plans to raise Nigeria’s urea production capacity from about 3 million metric tonnes annually to 9 million metric tonnes.

The expansion is expected to strengthen Nigeria’s position as a major fertiliser producer while improving access to essential agricultural inputs for farmers across the continent.

The facility will also help establish additional production capacity in Ethiopia, which is expected to add another 3 million metric tonnes of output.

Investment Targets Africa’s Fertiliser Supply Challenges

Africa relies heavily on imported fertiliser, making agricultural production vulnerable to international supply disruptions, rising costs and global market uncertainties.

AFC President and Chief Executive Officer, Samaila Zubairu, said the investment would support the development of a large-scale fertiliser platform capable of improving food security and economic resilience.

He noted that expanding local production would help create jobs, strengthen industrial capacity and reduce reliance on external markets.

The Dangote Group has previously stated that its fertiliser projects could require investments of up to $7 billion.

The planned expansion aligns with broader efforts to increase fertiliser availability, support agricultural productivity and strengthen value chains across Africa.

By increasing domestic production, the project is expected to provide more stable access to fertiliser inputs needed by farmers and agro-industries.

AFC Continues Support for Strategic Infrastructure

The Lagos-based development finance institution has previously supported major industrial projects, including helping arrange financing for Dangote’s large-scale refinery development.

The latest facility represents another major investment aimed at strengthening Africa’s industrial base and supporting long-term economic growth.