By Simpson Global Media News Desk
LAGOS, NIGERIA — Dangote Industries Limited has announced plans to take its fertiliser business public in 2028, as the company moves to significantly expand production capacity across Africa.
Dangote Group President and Chief Executive Aliko Dangote disclosed the plan during an interview at the Qatar Economic Forum, saying the fertiliser business is being positioned for a major expansion that would increase annual urea production from about 3 million tonnes to 12 million tonnes.
PHOTO CAPTION: Aliko Dangote and the Dangote Fertiliser complex in Ibeju-Lekki, Lagos. File/Archive photos.
IPO Planned for 2028
Dangote confirmed that the fertiliser business would be listed publicly in 2028, following the group's ongoing effort to broaden public participation in some of its major businesses.
The announcement comes as investors participate in the ongoing public offering of shares in Dangote Petroleum Refinery and Petrochemicals FZE.
Dangote said the fertiliser listing would accompany an expansion programme aimed at making the business one of the world's largest fertiliser producers.
Production Capacity to Rise to 12 Million Tonnes
Dangote Fertiliser currently operates a major urea production facility in Ibeju-Lekki, Lagos, backed by an investment of about $2.5 billion.
The company's sustainability report lists installed capacity at about 2.7 million metric tonnes per year, while current reports on the expansion programme put production at roughly three million tonnes and say the group plans to raise total capacity to approximately 12 million tonnes by 2028.
The expansion is expected to involve additional production capacity in Nigeria and a proposed fertiliser plant in Ethiopia. Dangote has also outlined plans involving potash and phosphate resources and production of about 2.2 million tonnes of diammonium phosphate (DAP).
Focus on Africa's Fertiliser Supply
Dangote said the expansion is intended to increase Africa's ability to meet its fertiliser requirements from within the continent and reduce exposure to disruptions in international supply chains.
The company has described fertiliser production as part of its broader strategy of adding value to African raw materials and strengthening domestic industrial capacity. Its sustainability report says the Lagos facility supplies markets across Africa and other international regions.
Dangote said he expects the expanded business to potentially supply more than 40 per cent of Africa's fertiliser demand, although that figure represents his projection rather than an independently verified market-share forecast.
Expansion Comes Amid Growing Investor Interest
The fertiliser IPO announcement follows heightened interest in Dangote's businesses after the launch of the refinery's share offering.
The Securities and Exchange Commission (SEC) confirmed approval of the refinery IPO and advised prospective investors to use only officially designated subscription channels and verify information through approved sources.
Dangote said the group's fertiliser and refinery investments form part of a wider programme of industrial expansion across Africa.
For Nigeria's agricultural sector, the proposed increase in domestic fertiliser production could have implications for the availability of locally manufactured inputs, while the planned IPO would potentially give public investors an opportunity to participate directly in the fertiliser business.
PHOTO CAPTION: Dangote Fertiliser's urea production complex at Ibeju-Lekki, Lagos, one of the company's flagship industrial assets.
Sources: THISDAY, BusinessDay, Reuters-sourced reporting, Dangote Fertiliser Sustainability Report, and Nigeria's Securities and Exchange Commission.
Comments
Post a Comment