The President of Dangote Group, Aliko Dangote and the Saipem Group’s Nigeria Country Manager, Mr. Giuseppe Surace, have signed an agreement relating to engineering works for infrastructure that will launch the construction of the biggest fertilizer project in Africa.
The plant, located in Edo State will be an excellent example of how to utilize a substantial amount of the country’s significant gas resources, as a raw material in the Ammonia-Urea fertilizer process.
Ultimately, the project, when completed will make the country self-sufficient in fertilizer production, thereby saving it the huge foreign reserves presently spent on importation of fertilizer.
With the agreement, Saipem is to build for the Dangote Group a fertilizer plant for the production of 7.700 MTPD of granulated Urea, (two trains with a production capacity of 3,850 metric tons each per day), and it is expected to start production in 2014.
The Plant will be the largest in Africa as its closest competitor has installed capacity of only 1,000 metric tons per day of Ammonia and 1,500 metric tons per day of Urea compared with the Dangote plants of 2,200 metric tons per day for Ammonia and 3,850 metric tons per train per day of Urea.
The project, which will create thousands of direct and indirect jobs in construction and related fields, will provide a major boost to the agricultural sector by significantly reducing the importation of fertilizer in Nigeria and ultimately removing the need for imports when plant is in full production.
After the official signing ceremony, Dangote said he strongly shared the view of President Goodluck Jonathan that the country should not be importing those things we have the raw materials and natural advantage for producing locally and fertilizer is one of such products.
Dangote said “There is no reason why Nigeria should be importing fertilizer, I am happy that with this agreement, by the time our plant is completed and commissioned, the country will become self sufficient in fertilizer production and even have the capacity to export the products to other African countries. Right now, farmers are forced to utilize whatever fertilizer that is available as they have no choice, but we need to know that the fertilizer that will work in Jigawa State may not be suitable in Adamawa State, as they may not have the same soil type and composition. The same fertilizer you use for sorghum may not be the fertilizer you will use for sugar cane.”
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