Dangote Group Unveils Bold Export Growth Strategy for Nigeria

Aliko Dangote, president of Dangote Industries Limited (DIL), Africa’s richest man, has announced plans to increase Nigeria’s export capacity with an ambitious project that focuses on fertilizer exports that may generate up to $7 million per day.

Dangote referred to his export strategy as an unprecedented business endeavor for Nigeria while speaking at the Nigerian Ports Authority (NPA) headquarters in Lagos.

“We will be exporting roughly 16,000 tons of fertilizer over the next two years,” he stated. That amounts to roughly $6.5 million to $7 million in revenue that will be entering the nation every day. We want to export about eight cargoes of fertilizer.

With an annual production capacity of three million metric tonnes, the Dangote Fertilizer factory is Africa’s largest granulated urea producing complex. This facility has been essential in supporting Nigeria’s agricultural sector and reducing reliance on imported inputs.

The vision of the business tycoon goes much beyond the shipping of fertilizer. In an interview with NPA director Abubakar Dantsoho on Sunday, he presented detailed plans to increase exports of a variety of products, such as cement, coal, polypropylene, and various petroleum derivatives.

“Our export business will soon be greatly expanded. As some of you may know from visiting our cement factory in Itori, we already export cement from Nigeria. He said that his company would start exporting coal in a few weeks and stated, “We have a whole factory of six million tons for cement export.”

More than 25 million tons of various products will be exported from the enormous $20 billion petroleum refinery, which is presently in operation. Among other things, these cargoes will include up to 700,000 metric tons of polypropylene.

Dangote explained the unusual scope of the planned maritime operations in the Lekki area. A million barrels of crude oil will be transported annually by 240 crude oil tankers, according to the expected operations. Furthermore, more than 600 product carriers and a large number of fertilizer delivery ships will be needed for the activities.

He declared, “This is an operation that has never, ever been seen in the country.” “However, if NPA fails to provide us with the services we require, our operations will collapse.”

The industrialist emphasized that more government support for the ports authority’s growth plans is crucial to its implementation. He emphasized the need for more maritime resources and equipment.

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“With their own hands, the [NPA] will not be able to perform these tasks. They must have the necessary tools. “They need more tugboats,” he said.

In order to guarantee the authority obtains sufficient government support, Dangote is dedicated to promoting institutional aid.

He went on to say, “We will also be putting in a few words in the necessary quarters to make sure that NPA gets all the necessary assistance from the Federal Government.”

NPA Director Dantsoho underlined the authority’s dedication to meeting the growing maritime needs of the Dangote Group, acknowledging their significance for the growth of Nigeria’s blue economy and marine industries.

Dangote’s initial projections of 600 vessels per year have already been exceeded by current port activities. Since October 1, 2024, the authority has handled and processed more than 57 vessels every month, surpassing initial projections.

That exceeds the projection. In the upcoming year or two, Nigerian ports’ operations will undoubtedly quadruple, Dantsoho said.

Authorization has been secured for new deep-water port developments in Ibom, Bakassi, Olokola, Ondo, and Badagry locations, while infrastructure upgrades at Tin-Can and Apapa port facilities are expected to start in the third quarter.

The administration is worried about these additional ports. We’ll start to notice that these ports will materialize very soon,” he stated.

This extensive export growth is a game-changer for Nigeria’s trade profile, with the potential to establish the nation as a significant exporter in a number of industrial areas. Combining fertilizer, cement, petroleum products, and other commodities might greatly increase foreign exchange profits and improve Nigeria’s standing in international markets.

Coordination between government and private sector infrastructure development, especially in port facilities and maritime support services, will be crucial to the success of these initiatives.