Aliko Dangote’s fertiliser plant is worth $2.5 billion and could make Nigeria a major food exporter.
Aliko Dangote, the richest man in Africa, launched his fertilizer plant today at the Lekki Free Trade Zone in Lagos. The fertiliser plant is considered the largest in the continent worth $2.5 billion.
The ceremonial unveiling of the plant was commissioned by Nigeria’s President Muhammadu Buhari and accompanied by the Lagos State Governor Babajide Sanwo-Olu.
The fertiliser plant was built to address Nigeria’s requirement for fertiliser, which is crucial for ensuring food security in Africa’s most populous country. This is part of a strategy to get the continent on the road to food security.
Since Nigeria currently use 1.5 million metric tonnes, the plant’s completion would help the country achieve food self-sufficiency. The plant will produce 3 million metric tonnes of urea fertiliser every year in its first stage of operation.
After the initial stage of operation, the capacity of the fertiliser plant will be expanded to produce numerous grades of fertilisers. This will be tailored to the African continent’s soil, crop, and climate needs.
This initiative taken by Aliko Dangote to create the fertilizer plant would, therefore, help minimise the importation of fertiliser and generate more than $400 million in foreign currency yearly.
This will also help alleviate the country’s forex exchange scantiness and put downward pressure on the naira’s value.
With the millions of urea fertilisers to be produced annually, experts feel that it will reduce Nigeria’s food insecurity and convert the nation into an exporter of food to the rest of the globe.
Apart from the fertiliser plant, Aliko Dangote’s oil refinery is almost complete with a plan of launching it in the third quarter (Q3) of 2022. The refinery is worth about $19 billion.
After completion, the refinery will be the world’s largest vertically integrated facility with a production of 540,000 barrels per day at the initial stage of operation and grow to 650,000 per day after that.