Dangote Signs $600 Million AFC Loan to Expand Fertilizer Plants
…Expects Over $4bn Annual Forex Earnings from Fertiliser Exports
By Patience Ikpeme
The Dangote Group has expanded its long-standing alliance with the Africa Finance Corporation (AFC) by finalizing a $600 million loan agreement aimed at scaling up its agricultural operations and enhancing continental food security.
The new credit facility was secured by GreenView Fertilizer Corporation, the holding entity for the group’s fertilizer division. The funds are earmarked to partially bankroll the expansion of its current urea manufacturing capacity within Nigeria alongside the setup of a new facility in Ethiopia.
The development is a critical piece of a massive $7 billion fertilizer expansion blueprint managed by the conglomerate. Through this initiative, the company intends to triple its output at its flagship Nigerian complex from three million metric tonnes per annum (MTPA) to nine MTPA. It will also finance a brand-new three MTPA urea factory in Ethiopia, collectively lowering the continent’s reliance on foreign inputs while boosting farm yields.
The injection of capital will go directly toward expanding the infrastructure at the Ibeju-Lekki complex in Lagos State, which stands as one of the largest granulated urea systems globally. The upgrade is designed to improve supply chain workflows and guarantee a stable supply of nutrients for African farmers, which market experts believe will stabilize seasonal pricing.
Detailing the financial prospects of the expansion, the President of the Dangote Group, Aliko Dangote, indicated that the ramped-up production is projected to yield more than $4 billion in yearly export revenues over the coming three years.
“What he’s actually given us this money for is a company where by the next three years we’ll be able to have an export of over $4 billion worth of urea fertilizer, and I think it is a big contribution to the foreign exchange income of the country,” Dangote stated during the signing ceremony.
The business mogul also reiterated his broader corporate goals, inviting key regional lenders to remain part of the journey.
“You can continue to count on us. When we say that we want to grow our group to $100 billion by 2030, it doesn’t mean that we want to grow alone, we want to grow together, especially with African Finance Corporation among other notable institutions in Africa,” Dangote added.
Reflecting on the financial structure of the deal, the President and Chief Executive Officer of the Africa Finance Corporation, Samaila Zubairu, explained that the facility represents a strategic reinvestment of recovered funds.
“This transaction demonstrates AFC’s capital recycling model in action,” Zubairu remarked. “Following the successful repayment of our earlier investment in Dangote Industries Limited, we are redeploying and doubling that capital into Dangote Group’s next phase of growth. By supporting the expansion of Dangote Fertilizer, AFC is backing a proven African industrial champion whose investments will strengthen food security, reduce import dependence, and create long-term economic value across the continent.”
The existing Lagos plant already services a substantial portion of local agricultural needs while shipping surplus output to overseas buyers. With the newly secured funding, the conglomerate aims to secure a more dominant position in the international agrochemical trade while insulating local supply chains from external shocks.
