Nigeria’s Largest Fertiliser Plant Owned by Dangote Prepares for NGX Listing

• Aliko Dangote is preparing to take Dangote Fertiliser Limited public on the Nigerian Exchange, with a potential valuation of over $3 billion
• The fertiliser plant, already Africa's largest, is part of a broader goal to reduce Africa's reliance on imports and boost local industry.
• If successful, the listing could attract more investment, increase production, and strengthen Nigeria's export capacity

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The richest man in Africa, Aliko Dangote, is preparing to take Dangote Fertiliser Limited public, one of his most ambitious businesses.

The company is set to debut on the Nigerian Exchange (NGX), potentially valuing it at over $3 billion.

This offering could drastically reshape the industrial and agricultural landscape of the nation.

The fertiliser plant is already the largest of its kind in Africa, covering 500 hectares in Ibeju Lekki, Lagos. However, market size and price aren’t the only factors at play here. It’s part of a broader goal Dangote has been quietly pursuing for years: reducing Africa's dependence on imports and reviving local industry.

The objective involves lowering local costs, enabling blends to be tailored for various soil types, and unlocking export opportunities across the region.

This larger goal extends beyond increasing production; it also aims to help Nigeria become self-sufficient and even supply its neighbours by reducing the nation's heavy reliance on imports.

The $3 billion valuation, according to Bloomberg, is based on a model that assumes the plant is operating at just 50% capacity. This suggests significant untapped potential. Investors are already taking notice. If the listing is successful, it could attract further funding to ramp up production, enhance distribution, and expand exports beyond Africa.

Dangote has stated that the timing is strategic. In a recent interview, he explained a phased rollout of public listings across the group.

“Yes, definitely. That’s the right thing to do. We plan to start this year with the fertilizer business, then move on to the refinery.” The strategy is to begin with the most stable and profitable arm of his empire and build from there.

For years, companies like Dangote Fertiliser were prohibited from listing due to regulatory rules, especially if they were still in operational testing. However, with support from the president, the Securities and Exchange Commission recently amended the regulations to change that.

Dangote praised the change, calling it essential for allowing established industrial companies to access public markets, according to a Billionaire.Africa report.

“We’ll take it one step at a time,” he said. “Fertilizer is no small business either. Our goal is to become the largest fertilizer company in the world within four years, maybe even sooner, surpassing Qatar.”

While this is an ambitious goal, it could have a significant impact. Increasing non-oil exports has never been more critical, as Nigeria's foreign exchange reserves are under pressure. Dangote Fertilizer, which already exports to South America, Europe, and West Africa, is expected to generate over $400 million in foreign exchange annually.

Listing on the NGX could further raise this figure by unlocking capital for faster expansion, stronger supply chains, and more robust exports.

Dangote announces cement, seaport projects in Ogun

Legit.ng reported that Aliko Dangote, President and Chief Executive of Dangote Industries Ltd has announced the company's return to major development projects in Ogun State.

Speaking during a visit to the ongoing construction site of a 6 million metric tons per annum cement factory at Itori in Ewekoro Local Government Area.

Dangote also revealed plans to build the largest seaport project in Ogun Waterside Local Government Area of the state.

Source: Legit.ng