Dangote Urea Fertiliser Plant
With the entry of Dangote Fertilizer Limited, the global urea production capacity is poised to achieve significant growth in the coming years. It could increase from 222.96 million tons per year (mtpa) in 2020 to 305.92 metric tons in 2030, with an overall growth rate of 37% recorded according to the global data report.
Devakumar Edwin, executive director of Dangote Industries Limited Group (Strategy, Capital Projects and Portfolio Development), said about a week ago that the newly launched $2.5 billion fertilizer plant could produce enough to solve local demand as they considers exports. Currently, the factory delivers 120 trucks locally.
Nigeria consumed about 20 kilograms of fertilizer per hectare of agricultural land in 2018, compared with 73 kilograms in South Africa and 393 kilograms in China according to World Bank data. As part of control measures aimed at promoting local production, the Central Bank of Nigeria banned the allocation of foreign exchange for the import of fertilizers.
Aliko Dangote, the billionaire president of the Dangote Group, stated at the Virtual Economic Forum in Qatar on Tuesday, June 22, 2021, that the new fertilizer plant is the first to be shipped and can produce 3 million tonnes of urea and ammonia every year, the start is scheduled for late June or early July.
He said the new fertilizer plant will export its first shipment to Louisiana in late June or early July, and most of the plant’s exports should be shipped to Brazil, adding that it also has delivery capacity for all majors markets in sub-Saharan Africa. He said: “In addition to meeting domestic demand, we can also earn a lot of money and export products to countries in Southern America.”
Over the next five years, 3 million metric tonnes of Dangote Fertilizer Plant and approximately 88 planned and announced plants will be available online, mainly in Asia and Africa.
Global Data announced the news in its recent announcement of increasing global urea production capacity in 2030, noting that the completion of Dangote Fertilizer has made Nigeria the country with the third largest production capacity increase, with a production capacity of 11.58 billion tons in 2030. The significant increase in production capacity is the two planned plants Dangote Group Lekki Urea Plant 1 and Dangote Group Lekki Urea Plant 2, which will have a production capacity of 1.5 million tons daily by 2030″.
However, the Dangote fertilizer factory places Nigeria in third place among other countries such as Iran and India, and will lead the growth of global urea production capacity through 2030. The report lists Dangote Industries Limited, Nagarjuna Fertilizers and Chemicals Limited and Fertilizer Corporation of India Limited as the world’s three largest companies with planned global urea production capacity through 2030.
Dangote Industries Limited built the largest fertilizer plant in West Africa. The Dangote Urea Fertiliser Plant Project is the largest granular urea fertilizer complex in the history of the fertilizer industry in the world, with an investment of 2.5 billion US dollars and an annual production capacity of 3 million tons of TPA. Dangote Fertilizer Complex is composed of ammonia and urea plants.
The Dangote Fertilizer Factory has created thousands of direct and indirect jobs in the construction industry and related fields. This will boost the agricultural sector by drastically reducing fertilizer imports into Nigeria and eventually reduce import demand when the factory is in full production.
Group CEO (strategy, capital projects and portfolio development) Dakote Industries Limited, Devakumar Edwin recently stated that the plant has the capacity to deliver more than 4,500 tonnes of urea daily, which will easily meet local demand and even supply of export products.
He said: “We have the capacity to produce 4,500 tonnes of urea per day. Because of its nitrogen content, it is a necessary fertilizer in Nigeria or around the world; it is a fertilizer rich with 46% nitrogen”.
“The company has the capacity to meet local demand and export to African countries. The current demand is less than 1 million tons, being able to produce only 3 million tons; therefore, we can easily meet local demand and also produce and export to other West African countries,” he said.
About this achievement, Ehiedu Iweriebor, a professor in the African American Studies Department at Hunter College, in the United States, said that the Dangote fertilizer factory, which is part of the refinery and petrochemical complex, has become national, continental and global shift.
“Because Nigeria provides it with the world’s first large-scale manufactured products for markets in Africa, North America and South America.” “For the first time in our lives, we will be exporting petroleum products. We will also export fertilizer chemicals from Nigeria for the first time.
He described the fertilizer factory as a global pan-African event. “Through the actions of the visionary and courageous son of Africans, Aliko Dangote Nigeria-African industrialist, the African continent has finally emerged.”
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