Jeph Ajobaju, Chief Copy Editor
Dangote Fertilizer Plant, the largest in West Africa, is set to begin operation in the first quarter of 2021 (Q1 2021) to meet local demand now increased by Abuja’s ban on the importation of fertilizer, an essential ingredient for greater food production.
“From only three operating in the country, we have 33 fertilizer blending plants now working. We will not pay a kobo of our foreign reserves to import fertilizer.
“We will empower local producers,” President Muhammadu Buhari said in September 2020, relayed by his spokesman, Garba Shehu.
The Dangote plant, being built at a cost of $2.5 billion, is expected to manufacture 3 million metric tonnes (mt) of urea yearly, to help reduce fertilizer imports, and also earn $400 million yearly foreign exchange (forex) from export to Africa countries.
“The coming on stream of the plant will not only boost food sufficiency in Nigeria, but also make Africa self-sufficient in food production and a net exporter of food to the world,” Dangote Group said.
Dangote also plans to produce multiple grades of fertilizers to meet soil, crop, and climate-specific requirement for the African continent.
The opening of the plant, located at Lekki Free Zone in Lagos, has been pushed back several times for reasons such as access to forex, the ailing economy, and the coronavirus pandemic.
The plant will also compete with Notore Petrochemicals Plant in Onne, Rivers State expected to produce 500,000 mt of urea yearly.
Notore was shut down in January for Turn Around Maintenance (TAM) to ensure production at full capacity, according to a disclosure it sent to the Nigerian Stock Exchange (NSE).
The company said it will improve the reliability index to 95 per cent from the current 67 per cent.
“Although disruption to global businesses occasioned by the COVID-19 pandemic and its attendant restrictions by governments all over the world affected the timely delivery of procured spares and the arrival to site of Vendor Service Men (VSM), the TAM is still on course and barring any unforeseen circumstance, it should be completed on 8th March 2021.
“Upon completion, we expect a significant improvement in the Plant’s reliability index and a sustained daily production output of 1,500MT. Attaining this level of production will guaranty improved cash flow, increase in annual revenue as well as return the Company to profitability.”
Last year, the company returned its operating plant to 1,500 mt per day (MTPD) and 500,000 mt per annum (MTPA) nameplate production capacity.
