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



Aliko Dangote - Investors King

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 Petroleum Refinery Set to Make History with Public Listing on NGX



Dangote refinery

Aliko Dangote, the president and chief executive of Dangote Industries Limited, has announced plans to publicly list the subsidiary, Dangote Petroleum Refinery, on the Nigerian Exchange Limited (NGX).

Dangote expressed confidence in overcoming previous challenges related to crude oil supply, stating, “We have resolved all the issues with crude oil supply. We are now ready to move forward with our plans to list the refinery on the Nigerian Exchange Limited.”

The refinery, poised to commence operations in December, holds the promise of significant contributions to the Nigerian economy.

At full capacity, it is expected to produce 650,000 barrels of oil per day, with an initial rollout of 540,000 barrels daily.

The facility will produce 27 million liters of diesel, 11 million liters of kerosene, and nine million liters of jet fuel, sourcing crude from various Nigerian producers, including the state oil company.

A finalized deal for the delivery of the first cargo of approximately six million barrels next month signals the imminent realization of this ambitious project.

The refinery’s impact is anticipated to extend beyond the oil and gas sector, with projections suggesting significant cost savings for Nigeria by eliminating the need to import petrol.

Industry operators and government officials are optimistic about the transformative potential of the Dangote Refinery.

Akinwumi Adesina, President of the African Development Bank (AfDB), lauded the project as the best-industrialized initiative for Africa, projecting substantial savings for Nigeria and the continent as a whole.

As Nigeria’s largest refinery project, the facility has garnered praise from the Lagos Chamber of Commerce and Industry (LCCI).

Dr. Chinyere Almona, the LCCI Director-General, commended the visionary efforts of Aliko Dangote and the supportive federal government, emphasizing the refinery’s capacity to meet Nigeria’s refined petroleum product needs.

The impending listing on the NGX positions Dangote Petroleum Refinery as a catalyst for economic growth, energy security, and self-sufficiency in Nigeria and beyond.

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Aliko Dangote: Dangote Refinery Set to Commence Operations, Eyes 350,000 Barrels Daily



Dangote and Akinwumi

In a recent interview with the Financial Times, Aliko Dangote, the President and CEO of the Dangote Group, announced that the long-anticipated $20 billion Dangote Refinery in Lekki, Lagos, is set to commence operations by refining 350,000 barrels per day.

Dangote revealed that a deal had been secured for the delivery of the first cargo of approximately 6 million barrels in December 2023.

He expressed confidence that the refinery could achieve its full capacity of 650,000 barrels per day by the end of 2024.

The Dangote Refinery, touted as the world’s largest “single train” facility with a singular distillation unit, is expected to significantly reduce Nigeria’s dependence on imported fuel and save billions in foreign exchange.

Dangote lamented the irony that Nigeria, a major oil producer for over 50 years, has struggled to refine its own crude adequately.

However, the project, which has faced delays and exceeded its budget by about $8 billion, has not been without challenges.

Dangote dismissed doubts about the refinery’s efficiency, stating that the challenges encountered during the project could have jeopardized his business empire.

He acknowledged being under intense pressure, facing allegations of underhand business practices and gaining unfair access to foreign exchange, which he vehemently denied.

Despite these challenges, Dangote expressed gratitude for overcoming the hurdles and reaching the destination.

The refinery is expected to generate substantial revenue, and plans are underway to eventually list it as a separate company on the Lagos stock exchange.

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Dangote Cement Advocates for Sustainable Cement Production Amid Rising Carbon Emissions



Dangote Cement - Investors King

In a bid to address the escalating global concerns over carbon emissions, Arvind Pathak, the Group Managing Director of Dangote Cement Plc, highlighted the cement industry’s pivotal role in contributing to seven per cent of worldwide carbon emissions.

Speaking at the 12th Africa Cement Trade Summit in Abidjan, Cote d’Ivoire, Pathak emphasized the necessity for the industry to adopt sustainable practices.

Pathak acknowledged the energy-intensive nature of cement production, outlining the emissions generated throughout the value chain, from raw materials’ processing to the final product’s dispatch.

Dangote Cement, a significant player in the industry, has committed to decreasing carbon emissions through a strategic fuel substitution approach.

Pathak, represented by the Group’s Head of Sustainability, Dr Igazeuma Okoroba, advocated for the use of alternative fuels, such as municipal, agricultural, and industrial wastes, to reduce emissions.

He emphasized that these alternative fuels emit less CO2 when combusted, contributing to a more sustainable and environmentally friendly cement production process.

Despite the challenges posed by global climate shocks, Pathak stressed that decarbonization is not merely an option but a necessary strategy for future-proofing businesses.

Dangote Cement, as a pioneer in decreasing CO2 emissions, has leveraged sustainability reporting and received positive ratings for its climate change initiatives.

The adoption of alternative fuels aligns with the broader goal of addressing climate change concerns and reducing the cement industry’s environmental impact.

Pathak highlighted the need for clear and detailed decarbonization targets, emphasizing that companies must adapt to a rapidly changing world by embracing sustainable practices.

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