Company News

Dangote’s $2.5bn Fertiliser Plant Expected to Generate Over $400m Annual Foreign Exchange

Published

2 years ago

March 21, 2022

Days of persistent forex scarcity may be coming to an end in Nigeria as Dangote’s $2.5 billion fertiliser plant is projected to realise more than $400 million in foreign exchange every year.

The plant scheduled for launching on Tuesday, 22nd March 2022, occupies 500 hectares of land in Lekki Free Trade Zone, Lagos Nigeria.

According to the Dangote Group, President Muhammadu Buhari will visit Lagos for the inauguration of the plant.

Buhari will be joined by the Lagos Governor, Babajide Sanwo-Olu as well as the Minister of Agriculture and Rural Development, Dr. Mahmouds Abubakar, the Minister of Industry, Trade and Investment, Adeniyi Adebayo and Governor, Central Bank of Nigeria (CBN), Godwin Emefiele, for the inauguration ceremony of what has been described as Africa’s largest granulated urea fertiliser complex.

Although arguably rich in agriculture and blessed with fertile lands, Nigeria’s dependency on fertiliser is growing by the day and this is also important for the mass production of certain food products across the country. The Dangote fertiliser plant is also coming up at a time when stakeholders have expressed the need to create an even better Nigeria where food security is assured.

According to Dangote, Nigeria is estimated to need about five to seven million metric tonnes of fertilisers per annum. However, the current level of fertiliser utilisation in Nigeria is 1.5 million metric tonnes. The company also went ahead to disclose that it has been positioned to produce over three million metric tonnes per annum of urea fertiliser in phase one of operations. Dangote also revealed that the company will work with agriculture stakeholders and development partners with state governments across Nigeria, as well as across Africa – provided that they are looking for a sustainable approach to improve soil and farm yields.

Investors King also gathered that plans are already on the way for expanding production to provide more than the plant’s three million metric tonnes per annum capacity and to produce multiple grades of fertilisers to meet soil, crop and climate-specific requirement for the African continent.

Dangote is one of the few Nigerian-owned enterprises that has made strong commitments to providing sustainable solutions across a number of sectors and the diversification of the business to the agriculture sector in Nigeria is also one that has been welcomed across boards. Over the years, Dangote has created sustainable environmental management practices, and products through a proactive approach that addresses the challenges of climate change and global warming.

While Dangote is also making a commitment to the sustainability of the environment, the establishment of this fertiliser plant will also lead to employment opportunities for Nigeria and reduce the country’s importation of fertilisers.

Also, the plant is expected to generate over $400 million annual foreign exchange from export to other African countries.

During the visit by the president, the unveiling of the plaque, a facility tour of the fertiliser plant and an inspection tour of the 650,000 oil refinery and 900,000 polypropylene plant as well as the Lekki Deep Sea Port is also expected to be undertaken.

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Dangote Refinery Denies NNPC Petrol Lifting Claims Amid Ongoing Contract Talks

Published

4 days ago

September 5, 2024

Samed Olukoya

Dangote Refinery has refuted claims that the Nigerian National Petroleum Corporation (NNPC) had begun lifting petrol from the refinery and set the pump price at N897 per litre.

In the BusinessDay publication, the newspaper reported that NNPC commenced petrol lifting on Wednesday and set the pump price at N897/litre.

Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Refinery clarified that NNPC has not yet begun lifting Premium Motor Spirit (PMS) from the refinery.

According to Chiejina, discussions between Dangote Refinery and NNPC on the contract for petrol lifting are still ongoing and have yet to be finalized.

Chiejina said since no petrol has been lifted, the claim of setting a price for the product is unfounded.

He further noted that the pricing of PMS falls under the jurisdiction of the government and is strictly regulated, meaning Dangote Refinery has no authority to set prices independently.

The company assured Nigerians that once operations begin, the refinery will deliver high-quality petroleum products across the country.

Chiejina urged the public to disregard the misleading headline and assured that accurate information will be provided as the refinery prepares to commence full operations.

The statement concluded by reiterating Dangote Refinery’s focus on contributing to Nigeria’s energy sector and meeting the nation’s demand for top-tier petroleum products.

Company News

Volvo to Launch Electric Truck With 600 km Range

Published

6 days ago

September 3, 2024

Samed Olukoya

Up to 600 km on one single charge. That’s how far Volvo’s next-generation heavy-duty electric truck will be able to drive. The longer range represents a breakthrough for long-distance transport with zero tailpipe emissions.

The electrification of heavy trucks is continuing across the world and longer distances are now becoming a possibility.

Next year Volvo will launch a new long-range version of its FH Electric that will be able to reach up to 600 km on one charge.

This will allow transport companies to operate electric trucks on interregional and long-distance routes and to drive a full working day without having to recharge. The new Volvo FH Electric will be released for sale during the second half of 2025.

“Our new electric flagship will be a great complement to our wide range of electric trucks and enable zero-exhaust emission transport also for the longer distances. It will be a great solution for transport companies with a high annual mileage on their trucks and with a strong commitment to reduce CO2,” says Roger Alm, President Volvo Trucks.

Five years of electric leadership

The enabler for the 600 km range is Volvo’s new driveline technology, the so-called e-axle, which creates space for significantly more battery capacity onboard. More efficient batteries, a further improved battery management system and overall efficiency of the powertrain also contribute to the extended range.

Volvo Trucks is a global leader in medium- and heavy-duty electric trucks with eight battery-electric models in their portfolio.

The wide product range makes it possible to electrify city and regional distribution, construction, waste management and, soon, long distance transport. Volvo has so far delivered more than 3,800 electric trucks to customers in 46 countries around the world.

“The transport sector represents seven percent of global carbon emissions. Battery-electric trucks are important tools to reduce the climate footprint. Besides the important environmental gains that electric trucks bring, they offer truck drivers a much better working environment, with much lower levels of noise and vibrations,” says Roger Alm.

Volvo Trucks drives the transition towards fossil-free transport to reach its net-zero emissions target by 2040 using a three-path technology strategy.

The three-path technology approach is built on battery electric, fuel cell electric and combustion engines that run on renewable fuels like green hydrogen, biogas or HVO (Hydrogenated Vegetable Oil).

Company News

Dangote Refinery Starts Gasoline Output Amid NNPC’s Struggles with $6 Billion Debt

Published

7 days ago

September 2, 2024

Samed Olukoya

Nigeria’s Dangote Refinery has begun processing gasoline after delays caused by recent crude shortages, an executive said on Monday.

The $20 billion refinery on the outskirts of Lagos, built by Nigerian billionaire Aliko Dangote, began operations in January with output of products including naphtha and jet fuel.

With a capacity of 650,000 barrels per day, Africa’s largest refinery promises to ease oil producer Nigeria’s costly reliance on imported oil products.

“We are testing the product (gasoline) and subsequently it will start flowing into the product tanks,” said Devakumar Edwin, a vice president at Dangote Industries Limited.

He did not say exactly when the gasoline would hit the local market.

Edwin said state-oil firm NNPC Ltd, Nigeria’s sole importer of gasoline, would buy its gasoline exclusively.

“If no one is buying it, we will export it as we have been exporting our aviation jet fuel and diesel,” Edwin said.

The delivery of gasoline into the Nigerian market will ease NNPC’s struggle to supply the local market.

The company is reeling with debts of $6 billion to oil traders for supply since January.

This has affected its ability to supply the local market where fuel queues have persisted since July.

Prices have jumped by 45% from the official price of 617 naira ($0.3942) announced after subsidies were removed last year.

“The news that Dangote is processing gasoline couldn’t come at a more crucial time given NNPC’s statement about its difficulties securing imported supply due to financial strain,” said Clementine Wallop, director, sub-Saharan Africa at political risk consultancy Horizon Engage.

She said this “prompts the question of how NNPC will manage purchasing from Dangote, and impresses the need for greater transparency in its finances”.

Nigeria is Africa’s top oil producer yet it imports almost all its fuel due to years of neglect of its national refineries.