Aliko Dangote plans to list Africa’s largest fertilizer plant this year

Key Points

• Dangote plans IPO for fertilizer unit in 2025, eyes global leadership by overtaking Qatar in output within four years.
• Fertilizer plant runs at full capacity, boosts Nigeria’s food security and forex earnings, generating $400M in foreign currency annually.
• $20 billion refinery hits 500,000 bpd, supplies fuel to Africa, Europe, and U.S., with full capacity expected by mid-2025.

Africa’s richest man, Aliko Dangote, revealed over the weekend his plans to list Dangote Fertilizer Limited, the continent’s largest granulated urea fertilizer complex. After that, he intends to list his massive $20 billion refinery.

When asked about the possible listings of his refinery or other Dangote Group businesses, Dangote said, “Yes, definitely. That’s the right thing to do. We plan to start this year with the fertilizer business, then move on to the refinery. Previously, pre-test companies couldn’t be listed, but the President approved changes under the renewed SEC code, so that hurdle has been cleared. We’ll take it one step at a time. Fertilizer is no small business either. Our goal is to become the largest fertilizer company in the world within four years, maybe even sooner, surpassing Qatar.”

Nigerian fertilizer plant feeds the future

Dangote Fertilizer is a $2.5 billion facility spread over 500 hectares in Ibeju Lekki, Lagos State, Nigeria. It is Africa’s largest granulated urea fertilizer plant, with an annual production capacity of 3 million metric tonnes.

According to Bloomberg, the plant is valued at over $3 billion based on a net present value calculation assuming a 50 percent utilization rate. However, since launching three years ago, it has been running at full capacity to meet Nigeria’s fertilizer demand of 1.5 million tonnes annually, while lowering prices and helping to address food insecurity.

Since starting operations in March 2022, the plant has expanded its production to include several grades of fertilizer tailored to Africa’s diverse soils, crops, and climates. Fertilizer is crucial for agribusiness, and this facility’s output will help reduce food insecurity in Nigeria and position the country as a net food exporter. The plant will also ease Nigeria’s foreign exchange shortage and pressure on the naira by cutting fertilizer imports, generating over $400 million in foreign currency annually.

Dangote powers Africa’s energy breakthrough

On the energy front, Dangote is changing Africa’s energy landscape, one step at a time. His refinery has significantly reduced Nigeria’s reliance on fuel imports, ending its long-standing status as Africa’s top fuel importer.

With domestic oil supply tightening, Dangote has increased imports of U.S. West Texas Intermediate (WTI) crude oil, reflecting shifting global trade patterns and Nigeria’s urgent need to stabilize fuel production. Meanwhile, South Africa has moved into a leading role in regional fuel trade.

The refinery, with a capacity of 650,000 barrels per day (bpd), now sources about one-third of its crude from the U.S., nearly doubling imports since early 2024. This shift responds to several challenges: falling Nigerian oil production due to underinvestment, pipeline theft, and aging infrastructure; the advantage of WTI’s higher gasoline yields; and changing global markets.

Speaking about the refinery’s progress, Dangote said: “When we first announced plans to build the largest refinery, we didn’t realize the challenges ahead, especially with terrain and logistics. But we thank God that today, we’re up and running. Nigeria is now one of the largest suppliers of jet fuel to Europe. It’s something we’re very proud of. And I know journalists and many others have been part of this journey, even the gray hairs on my chin tell the story!”

Refinery rises, breaking energy boundaries

Since starting operations in 2024, the refinery has expanded its output from diesel and naphtha to include gasoline. Flexibility in sourcing crude remains essential as the refinery manages local supply fluctuations and optimizes production. By January 2025, the refinery reached 500,000 bpd, with a target of full 650,000 bpd capacity by mid-2025.

Beyond Nigeria, the refinery supplies diesel and aviation fuel to countries including Cameroon, Angola, Ghana, and South Africa. It has also sold jet fuel to Saudi Aramco, the world’s largest oil producer, strengthening its role in global energy trade. In March, it exported 2 million barrels of jet fuel to the U.S., marking another milestone in its growing international reach.