Dangote Fertiliser Aims for 12 Million Tonnes Capacity Ahead of IPO Launch

Dangote Fertiliser Aims for 12 Million Tonnes Capacity Ahead of IPO Launch

Dangote Fertiliser Limited is set to expand its annual production capacity to 12 million metric tonnes, marking a major step in the Dangote Group’s industrial growth strategy and paving the way for a planned stock market listing in 2027. The ambitious expansion, which will involve building six new production lines, is expected to begin operations between late 2028 and early 2029. This move significantly boosts the company’s current output, which stands at approximately three million tonnes of urea annually from its Ibeju-Lekki complex in Lagos. The new capacity will quadruple the group’s existing fertiliser production, positioning it as a dominant player in Africa’s agricultural input sector.

Aliko Dangote, President of Dangote Industries Limited, announced these plans during an investors’ meeting at the Nairobi Securities Exchange. He confirmed that the public listing of Dangote Fertiliser has been accelerated from the previously stated 2028 timeline to 2027. This earlier target was revealed after Dangote had initially shared the 2028 plan during his appearance at the Qatar Economic Forum UNGA Special Edition in New York. The shift reflects the group’s growing confidence in the fertiliser business and its readiness to open up to broader investor participation.

The proposed listing aligns with Dangote Group’s long-term strategy of gradually taking its largest businesses public, moving away from closely held ownership structures. While specific details about the listing structure, valuation, or exchange remain undisclosed, the intention is clear: to make Dangote Fertiliser a publicly owned entity. This development adds momentum to the group’s efforts to diversify funding sources and enhance transparency in its operations.

Beyond Nigeria, the expansion includes plans to develop fertiliser projects in Ethiopia and tap into potash and phosphate resources across the continent. The company also aims to establish a 2.2 million-tonne annual capacity for diammonium phosphate (DAP), broadening its product portfolio beyond urea. These initiatives are designed to strengthen Africa’s domestic fertiliser production and reduce reliance on imported agricultural inputs. Dangote has projected that the expanded operations could eventually meet over 40 percent of Africa’s fertiliser demand.

In tandem with the fertiliser expansion, the group has launched a new shipping unit to support logistics for raw materials and finished goods across its growing African footprint. This strategic move underscores the importance of efficient supply chains as Dangote expands its industrial and energy investments. With the fertiliser project, listing plans, and new shipping arm, Dangote Group continues to solidify its role as a key driver of industrial development in Africa.