The Dangote Group, controlled by Africa’s richest man Aliko Dangote is close to sealing a final investment decision (FID) to double the capacity of Dangote Fertiliser Limited (DFL).

Dangote Fertiliser Limited is the largest Granulated Urea Fertiliser complex in Africa, with an investment of $2.5 Billion, the plant has a capacity of 3 million metric tonnes per annum (MMTPA). Doubling the plant capacity will take it to 6 MMTPA.

“We have already decided to double the capacity. We are closing the deal on engineering, we are not stopping with Urea, but also adding diammonium phosphate, Ammonium Nitrate, NPK (Potash), for a complete bouquet of Fertiliser,” Devakumar Edwin, Vice President, Oil and Gas, Dangote Industries Limited, said in an interview seen by MoneyCentral.



Final Investment Decision or FID means the Board has affirmatively voted or consented to undertake construction of the Project and the Company has given a full notice to proceed under an Engineering, Procurement, and Construction or EPC Contract.

It represents the point at which a company or investor commits significant financial resources to proceed with the project’s execution.

The plant as it is today is meeting local demand of about 1 million tonnes/year and has a large surplus for export. Those exports are taking place with Fertiliser already shipped to Brazil and Argentina in Latin America, the United States, some West African countries, Europe, Brazil, and India according to Vishwajit Sinha, Managing Director, Dangote Fertiliser.

DFL’s Bulk Urea Exports are propelled through the Dangote Quays Lekki which are in close proximity to the Plant.

The move to double capacity of the Fertilizer plant is a no brainer as the current plant which is one of the newest in the world is highly profitable and is forecast to have 66% EBITDA margin in the 2022-2025 period, according to Fitch ratings.

Fertilizer prices have however dropped from record highs in 2021/2022, when Russia’s invasion of Ukraine threw global supplies into disarray.

Urea prices are down 28 USD/tonne or 8.47% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for the commodity. Historically, Urea reached an all time high of $1050/tonne in April of 2022.

The Fertilizer plant which is expected to reduce Nigeria’s fertilizer imports is already saving the country about $125 million per annum of import costs, according to data from the Dangote Group.

MCentral:

https://moneycentral.com.ng/exclusive/article/dangote-nears-engineering-deal-to-double-fertiliser-plant-capacity/

Mckraz01:



Abeg when are we going to be buying fuel for #200/ltr...?

Emmabyte:
That name Dangote is becoming useless, that guy is not a business man

He is just a yahoo yahoo man who cash out from the government

Government maid billionaire

Bitterkola100:
kids