Aliko Dangote secures AFC backing for $7 billion fertilizer expansion in Nigeria, Ethiopia

Dangote Industries Limited, led by Africa’s richest person Aliko Dangote, has secured backing from the Africa Finance Corporation (AFC) for a $7 billion expansion plan that will lift fertilizer production in Nigeria and establish a new manufacturing base in Ethiopia. The project ranks among the largest industrial commitments to agriculture-focused production on the continent.

The plan is aimed at increasing fertilizer supply for African farmers, lowering reliance on imports, and improving access at a time when food demand is rising and global supply chains remain uneven. It also comes as governments across Africa place greater focus on food production and domestic manufacturing to reduce exposure to external market shocks.

Fertilizer output supports food security

Dangote Industries said the program is not limited to output gains but is intended to support longer-term agricultural development. The group added that the investment is expected to strengthen local industrial capacity, support farm productivity, and improve stability in regional food systems. The expansion will scale up operations at its fertilizer plant in Nigeria while creating a new production hub in Ethiopia, two of the continent’s largest agricultural markets.

The leading industrial and manufacturing conglomerate described its partnership with AFC as a coordinated effort to fund large-scale industrial projects tied to essential sectors. It said fertilizer production remains central to improving food output and supporting economic activity across farming communities. The collaboration also reflects a wider push by African investors and institutions to build more production capacity within the continent.

Expansion targets nine million tons annually

Recent trade data highlights the growing role of fertilizer in Nigeria’s export earnings. The country generated N1.37 trillion ($1 billion) from fertilizer exports in the first quarter of 2026, making granulated urea one of its top non-oil exports, behind crude oil and natural gas. The figures show how industrial output is increasingly contributing to foreign exchange earnings.

At the center of this growth is the Dangote Fertilizer complex in Lekki, near Lagos, which has an annual capacity of about 3 million metric tons. A large share of its output is shipped to international markets, including Brazil, India, the United States, and Mexico. The conglomerate is also expanding its presence in East Africa, raising planned investment for a fertilizer plant in Ethiopia to more than $4 billion.

Technical agreements signed with engineering partners in late 2025 support a longer-term plan to expand total urea output to about 9 million metric tons annually. The upgrade will add new production units at the Lekki facility, positioning it among the largest urea production sites globally and reinforcing Nigeria’s role in global fertilizer supply chains.