The Dangote Group and Africa Finance Corporation (AFC) have signed a $600 million financing agreement to expand fertiliser production capacity in Nigeria and establish a major manufacturing platform in Ethiopia.
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 the development of a new fertiliser facility in Ethiopia as 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 also adding a new 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 said the latest transaction reflects its commitment to supporting transformative industrial projects capable of delivering long-term economic benefits across the continent.
The corporation noted that despite possessing 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 achieving agricultural resilience and food security.
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, which supported the refinery project during its development phase.
Speaking on the latest financing arrangement, President of Dangote Group, Aliko Dangote, said the investment would significantly boost export earnings while strengthening Nigeria’s foreign exchange position.
Commenting on the transaction, 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.
(Ripples)