The $2.5 billion urea and ammonia fertilizer plant was commissioned by Nigeria’s President Muhammadu Buhari in Lagos, the place Dangote can also be on account of open a 650,000 barrels per day oil refinery, later this yr.
“People are begging us to promote,” he mentioned.
“We are very picky who we promote this product to. We are loading a ship going to US, Brazil, Mexico, India… The EU are attempting to purchase from us,” he added.
The fertilizer manufacturing unit sits on 500 hectares (1,235 acres) of land on the outskirts of Lagos and has a capability to provide 3 million metric tons of urea yearly, making it the second largest plant on this planet, Dangote mentioned.
Its launch comes at a essential time. The warfare in Ukraine has pushed up costs and induced world meals shortages. Russia and Ukraine are main suppliers of urea, potash and phosphate, key parts of fertilizers. The nations are additionally main world suppliers of wheat and different grains.
Urea and ammonia are important elements for farmers to satisfy manufacturing targets and entry to fertilizer has been diminished considerably, threatening the worldwide meals provide chain.
“We are fortunate to have this plant,” Dangote added. “It is coming on the proper time with the Ukraine-Russia battle as each Ukraine and Russia management substantial quantities of agricultural inputs …This might help numerous African nations. The export market is a vendor’s market.”
The variety of folks on the sting of famine has jumped to 44 million from 27 million in 2019, the UN’s World Food Programme mentioned this month. Parts of Africa might be plunged into starvation in as little as three months if Russia’s warfare in Ukraine drags on, says Wandile Sihlobo, chief economist of the Agricultural Business Chamber of South Africa.
“In the quick time period, between now and three months, the battle will have an effect on meals provide primarily from a pricing perspective,” Sihlobo instructed CNN.
Nigeria has been making an attempt to diversify its financial system away from oil for a while and Dangote believes that the plant might earn the nation $5 billion in export income annually.
“This is a really large impression. It could be very important for Nigeria’s financial system,” Dangote instructed CNN.
Central Bank Governor Godwin Emefiele mentioned lowering fertilizer imports was a key pillar in Buhari’s diversification agenda, taking the nation from being a web importer of the commodity to self-sufficiency.
“Indeed, through the previous 5 years, over 35 million luggage of blended fertilizer has been produced in Nigeria. Consequently, our import invoice on fertilizer has not solely declined considerably however we’re additionally witnessing rising funding within the fertilizer trade, such because the one being commissioned right now by the Dangote Group,” he mentioned throughout a speech on the inauguration of the plant.
“Today, Nigeria is self-sufficient within the manufacturing of urea, and we’re additionally the main producer of urea within the African continent.
Speaking on the occasion, Buhari mentioned the plant would assist Nigeria finish dependency on meals imports.
“The plant is creating large alternatives within the space of job creation, warehousing, transport and logistics. This will create important wealth, cut back poverty, and assist in securing the way forward for our nation.”
The Dangote Group is second largest employer in Nigeria after the federal authorities.