Dangote Fertiliser Becomes Major Supplier as Iranian Output Declines Amid Middle East War
- Dangote Fertiliser Limited is seeing a surge in global demand as tensions in the Middle East disrupt fertiliser supply chains and reduce Iranian output
- Buyers are increasingly turning to Africa’s largest producer of granulated urea and ammonia, with a capacity of about three million tonnes annually
- Dangote is also expanding globally with plans to become the world’s leading urea exporter while pursuing a $2.5 billion fertiliser project in Ethiopia
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Dangote Fertiliser Limited is experiencing a surge in global demand for its products as geopolitical tensions involving the United States, Israel, and Iran disrupt fertiliser supply chains and shake commodity markets.
Devakumar Edwin, Vice President of Dangote Industries Limited, said buyers from different parts of the world are increasingly turning to the Lagos-based fertiliser plant to fill supply gaps caused by reduced Iranian production.
Source: UGC
Speaking during a call with Bloomberg on Monday, Edwin explained that the ongoing conflict has significantly tightened global fertiliser supply, pushing more importers to seek alternative sources.
“Demand has gone up substantially due to the shortage in the global market,” he said.
Middle East tensions disrupt fertiliser supply routes
The current conflict in the Middle East, and its effects on shipping and access to the Strait of Hormuz, is disrupting global fertilizer markets, raising prices and tightening supply across global agriculture.
The conflict involving Iran has raised fresh concerns about shipping activities through the Strait of Hormuz, a strategic maritime route through which about one-third of global fertiliser supplies are transported.
About 25%-30% of the world’s nitrogen fertilizer exports pass through the Strait of Hormuz and vessel traffic through the Strait is now reduced to a trickle, with further disruptions across the Gulf, North Africa, and the Eastern Mediterranean.
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Any disruption along this key shipping corridor could further strain supply chains and drive up prices, prompting buyers to diversify their sourcing options.
Dangote Fertiliser expands global and regional footprint
The Lagos-based facility remains Africa’s largest producer of granulated urea and ammonia, with an annual production capacity of about three million tonnes.
Around 37% of its production is exported to the United States, making it one of the company’s key markets.
Founder of the group, Aliko Dangote, has previously revealed plans to position the company as the world’s top urea exporter within the next four years, challenging Qatar’s dominance in the sector.
He also said the company is positioning itself to become the world’s largest fertiliser producer by 2028.
The company is also expanding its presence across Africa. In August 2025, Dangote signed a $2.5 billion agreement with the Ethiopian government to build a new fertiliser plant in the country’s Somali region.
Dangote announces cement, seaport projects in Ogun
Meanwhile, Legit.ng earlier reported that Dangote announced the company's return to major development projects in Ogun State.
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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
