ABUJA, Nigeria (VOICE OF NAIJA)- Demand for Dangote fertiliser has risen sharply in recent weeks as the ongoing US–Israel conflict with Iran disrupts global fertiliser supply chains, Bloomberg has reported, citing the Vice President of Dangote Industries Limited, Devakumar Edwin.
Edwin explained that demand had grown significantly due to shortages in the international market. “Demand has gone up substantially due to the shortage in the global market,” Edwin told Bloomberg in an interview.
Reports indicate that a large portion of global fertiliser shipments usually passes through the Strait of Hormuz, the narrow waterway linking the Persian Gulf to the Arabian Sea.
However, the conflict involving Iran has effectively halted traffic along the corridor, restricting access to fertiliser exports from the region.
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The disruption has affected supplies of key products such as urea and ammonia produced in Iran, while also driving up natural gas prices, a major input in fertiliser production.
Dangote’s fertiliser plant, regarded as Africa’s largest granulated urea facility, has an annual production capacity of about three million tonnes of urea and ammonia.
The company exports roughly 37 per cent of its output to the United States and has previously stated its ambition to become the world’s largest exporter of urea within the next four years.
Africa currently imports more than six million metric tonnes of fertiliser annually, a costly reliance that affects agricultural productivity and leaves farmers vulnerable to global supply disruptions.
In June last year, the President of the Dangote Group, Aliko Dangote, announced plans to expand the $2.5bn Dangote Fertiliser Plant.
The expansion is expected to significantly boost production capacity, reduce Africa’s dependence on imported fertiliser, and improve the continent’s self-sufficiency in agricultural inputs.
Dangote said at the time that Africa could achieve fertiliser self-sufficiency within the next 40 months.
Earlier, Dangote also stated that within the next two years the company would be exporting nearly 16,000 tonnes of fertiliser, generating about $7m in daily revenue for the Federal Government.
Dangote made this disclosure during a courtesy visit to the headquarters of the Nigerian Ports Authority in Marina, Lagos, last year.
He added that fertiliser exports would position the company as a major contributor to Nigeria’s foreign exchange earnings.
“In the next two years, we will be exporting about 16,000 tonnes of fertiliser. When you talk about 16,000 tonnes of fertiliser, it’s about $6.5m to $7m in revenue that will be coming into the country daily. With our export programme, our company will be the major supplier of foreign exchange earnings in Nigeria,” Dangote was quoted as saying.