Dangote signs Saipem, EIL for $2.5bn fertilizer expansion

Aliko Dangote is moving ahead with a major expansion of his fertilizer business, signing technical agreements with engineering firms including Saipem SpA and Engineers India Ltd. to boost capacity in Nigeria and build a new plant in Ethiopia.

The deals are part of a plan to triple urea output at the group’s complex in Lekki, outside Lagos, from the current 3 million metric tons a year to about 9 million tons. The upgrade will add four new trains to the existing lines, making the facility one of the largest producers of urea globally once completed.

At the same time, Dangote has begun development of a separate $2.5 billion fertilizer plant in Gode, Ethiopia, designed to produce another 3 million tons annually. Construction follows a recent groundbreaking ceremony in the Somali region of the country, where authorities see the project as a cornerstone of a wider industrial push.

To execute both programs, Dangote has contracted several international technology and engineering firms. Denmark’s Topsoe will supply ammonia technology for six plants — four in Nigeria and two in Ethiopia. Saipem will provide process design for urea melt units across all facilities. Germany’s Thyssenkrupp, through its UFT unit, will supply the granulation technology needed to produce export-grade urea.

India’s state-backed consultancy Engineers India Ltd. has been appointed as project management consultant for the four new plants being developed in Lekki. The company will oversee engineering, procurement and construction management, according to Dangote officials familiar with the agreements.

The expansion underscores the billionaire’s growing push into agricultural inputs as African governments try to address rising food insecurity and lower reliance on imported fertilizer. Higher regional output could also position Nigeria and Ethiopia as exporters at a time when global supply chains remain volatile due to disruptions in energy markets.

In addition to its refinery and cement operations, fertilizer has become a central pillar of Dangote Industries Ltd., which says the new agreements will create jobs, widen value chains for farmers and expand Africa’s role in the global fertilizer market.