Business
Dangote, Ethiopia PM Break Ground on $2.5bn Fertiliser Plant
A new chapter in Africa’s industrial story opened on Thursday as Aliko Dangote, President/Chief Executive, Dangote Group, led the groundbreaking of a $2.5 billion fertiliser plant in Gode, Ethiopia.
The project, a partnership between Dangote Group and Ethiopian Investment Holdings (EIH), with a production capacity of three million metric tonnes of urea annually, is expected to become one of the world’s largest fertiliser complexes.
Biztellers reports that it is strategically located in Ethiopia’s South-East region, and will leverage the country’s abundant natural gas resources from the Hilal and Calub reserves to boost agricultural productivity, create jobs, and enhance food security across the Horn of Africa.
During the ceremony, Ethiopia’s Prime Minister, Abiy Ahmed described the fertiliser project as more than just industrial progress, stressing that it symbolises shared responsibility, cooperation, and peace.
According to PM Abiy, the project reflects Ethiopia’s commitment to harnessing opportunities and elevating its presence on the global stage.
“They embody our shared responsibility to harness opportunities, strengthen cooperation, and promote peace. Hence, I call upon all Ethiopians to continue mobilizing in unity for progress,” Abiy said.
“By doing so, we elevate Ethiopia’s presence on the global stage in a way that honours the true spirit of our Ethiopian identity,” he added.
Alh Dangote commended Abiy and his cabinet for reforms and economic liberalisation that have opened key sectors to private investments, which he noted has positioned Ethiopia as one of Africa’s most attractive destinations for global investors.
He lauded the government’s investment in infrastructure, including transport, energy, and the Grand Ethiopian Renaissance Dam, which he described as a foundation for the country’s industrialisation.
“This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialise Africa and achieve food security across the continent,” Dangote said.
“We are committed to bringing our decades of experience in large-scale industrial projects to ensure this venture becomes a cornerstone of Ethiopia’s industrial transformation,” he added.
Alh Dangote disclosed that the Gode project marks just the beginning, with plans to expand into the production of other fertilisers such as ammonium nitrate, ammonium sulphate, NPK, and calcium ammonium nitrate, which would position Ethiopia as a regional hub for fertiliser production.
He predicted that within five years, Ethiopia could become Africa’s leading agricultural nation.
Biztellers reports that this investment is Dangote Group’s second major project in Ethiopia. Its cement subsidiary has operated a 2.5Mta plant in Mugher for more than a decade, with an additional $400 million committed to doubling its capacity.
Across Africa, Dangote said the Group’s strategy is guided by the belief that “only Africans can develop Africa,” with a focus on manufacturing to reduce dependence on imports.
He highlighted the Dangote Group’s role in transforming Nigeria into a net exporter of petroleum products, cement and fertiliser, through its refinery, cement plants, and fertiliser expansion, which is set to become the largest in the world at nine million metric tonnes per annum.
“These investments have already changed Nigeria’s story,” Dangote noted. “We’ve moved from being import-dependent to becoming self-sufficient and even exporters of cement, fertiliser, and petroleum products. Our mission is to help other African nations achieve the same transformation. We strive to make African countries become self sufficient in the production of those goods whose necessary raw materials are readily available. We have demonstrated that feat in the cement sector where many African countries are now net exporters of cement through our investments. We are ready and happy to work with more African countries to drive their industrialization plans and aspirations.”
He described the Gode project as a “new dawn,” the first time a private African investor is partnering with an African country to build an industrial complex of this scale.
“We understand Africa, its challenges, its opportunities, and its potential. And we believe only Africans can truly transform Africa,” he said.
He pointed out that, “Our mission at Dangote Group is to lead Africa’s industrial transformation. This project marks the first time a private African investor is partnering with an African country to build such an industrial complex.”
He hinted at the establishment of polypropylene bagging plant to boost the industry in Ethiopia.
Alh Dangote expressed gratitude to financial institutions including Afreximbank, the Africa Finance Corporation (AFC), Access Bank, First Bank of Nigeria, Zenith Bank, and other indigenous banks for supporting the project.
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Meanwhile, the President of the Somali Region, Mustafa Omar, described Aliko Dangote as “the anchor investor Ethiopia has been looking for.”
He noted that Dangote is not only a trusted investor but also one who is highly appreciated by both Ethiopians and Africans at large.
The event was attended by senior Ethiopian government officials, industry leaders, and financiers.
Across Africa, the Dangote Group’s industrial story is expanding. Dangote Cement alone has a total installed capacity of 55 million tonnes per annum across 11 countries. The company also built the world’s largest single-train refinery in Nigeria, with a capacity of 650,000 barrels per day, alongside a one million metric tonne polypropylene plant. Its fertiliser arm, which started at three million metric tonnes, is being expanded by six million tonnes, a move that will make it the largest fertiliser operation in the world.
The looming Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals (DPRP) presents Nigerians with a rare opportunity to transition from being mere consumers of energy products to becoming owners of a vital industrial asset.
President and Chief Executive of Dangote Industries Limited, Aliko Dangote, said the planned listing represents more than a financial transaction. According to him, it offers Nigerians a chance to participate directly in the value chain of products and services that affect their daily lives.
For decades, millions of Nigerians have spent a significant portion of their income on transportation, power generation, logistics, and other activities dependent on refined petroleum products.
READ ALSO: Dangote Discloses Strong Global Scramble for Refinery Stock
The Dangote Refinery IPO, he noted, creates a pathway for ordinary citizens to own a stake in an enterprise at the center of that economic activity.
“Every day, Nigerians use products that depend on refined petroleum. What makes this IPO unique is that it gives people the opportunity not only to consume but also to participate as owners in the industrial system that powers economic life,” Dangote said.
He explained that many of the country’s most strategic infrastructure assets have traditionally been beyond the reach of ordinary citizens. The refinery listing seeks to change that by opening ownership to a broad spectrum of investors.
“When a businessman transports goods, when a farmer moves produce to the market, when a manufacturer powers production, when families travel across the country, energy plays a role. The refinery supports these activities. Through the IPO, Nigerians can now have a direct stake in the value being created,” he added.
Dangote said widespread ownership of productive infrastructure strengthens the connection between citizens and national development. According to him, countries that have achieved sustainable economic growth often encourage broad public participation in major enterprises through capital market investments.
The billionaire industrialist noted that the refinery is not merely an energy project but an integrated industrial platform that supports manufacturing, trade, transportation, exports, and broader economic productivity.
“This is about creating an ownership culture around national development. We want more Nigerians to share in the success of assets that contribute directly to economic transformation,” he stated.
Financial market observers believe the listing could mark a significant milestone in deepening retail participation in Nigeria’s capital market by linking everyday economic activity with long-term investment opportunities.
With a capacity of 700,000 barrels per day, the Dangote Petroleum Refinery is the world’s largest single-train refinery and one of Africa’s most significant industrial investments. The company believes that opening ownership to the public reinforces the refinery’s identity as a national industrial asset built to serve generations.
Dangote reiterated the company’s commitment to transparency, strong corporate governance, and sustainable value creation, assuring prospective investors that details of the public offering would be communicated through approved regulatory channels.
“The refinery has become part of daily economic life in Nigeria. Through this IPO, we are creating an opportunity for Nigerians to move beyond participation as consumers and become participants in the value that this asset generates. That is a powerful statement about inclusive growth and national progress,” he said.
Photo Caption: L-R: Group Executive Director, Commercial Operations, Cement and Foods Businesses Dangote Industries Limited, Mariya Aliko-Dangote; Director, Dangote Petroleum Refinery & Petrochemicals, Adedapo Adeolu Segun; Group Vice President, Oil & Gas and Fertiliser, Dangote Industries Limited, Devakumar Edwin; Company Secretary, Dangote Petroleum Refinery & Petrochemicals, Christian Meseko; President/CE, Dangote Industries Limited, Aliko Dangote; CEO, Dangote Petroleum Refinery & Petrochemicals, David Bird; Group Managing Director / Chief Executive Officer, Vetiva Capital Management Limited, Chuka Eseka; Group Vice President, Business Units, Dangote Industries Limited, Olakunle Alake; Group Executive Director, Commercial Operations, Oil & Gas, Fertiliser and WAEP, Fatima Aliko-Dangote; CFO, Dangote Petroleum Refinery & Petrochemicals, Bruce Tanner; at the signing ceremony of Dangote Petroleum Refinery & Petrochemicals FZE Initial Public Offering (IPO) in Lagos on Monday, September 7, 2026.
The Chief Executive Officer, Dangote Group, Aliko Dangote has disclosed that Abu Dhabi National Oil Company (ADNOC) and other strategic investors are interested in taking stakes in the Dangote Petroleum Refinery and Petrochemicals (DPRP), but divulge details of the potential investments because of non-disclosure agreements (NDA).
Dangote spoke with journalists in Lagos on Monday after a signing event connected to the refinery’s planned share offering, where he was asked to confirm reports that ADNOC was seeking a stake in the facility.
He said the refinery’s share offering was not “prompted by the current Middle East crisis or other temporary market conditions, insisting that its financial projections were based on normal market conditions.”
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Asked specifically whether ADNOC was joining as an investor and whether other strategic investors were also seeking stakes, Dangote said the company had “agreements with several parties but could not disclose details.”
“I don’t want to—you know, there is what you call an NDA, you know, non-disclosure agreement. So, we have agreements with other people; it’s not only ADNOC, other people too. They are very, very interested.
“There are other governments too; they have invested and they are also investing more money, you know,” he said.
Dangote said the level of interest in the refinery had surprised the company, citing demand recorded during an earlier offer to private investors.
“So, the investment really, like what I said; it is actually shocking to us how people are very, very interested in investing in this, you know, refinery.
“And it has shown: when we wanted to sell only $1 billion worth of shares to our private investors, and you know, we got 3.7 times the demand!
“What was paid into our accounts was 3.7 billion instead of 1 billion, and we had to be forced to take $2.5 billion, and we returned 1.2 billion out there,” he noted.
He said the demand could be even stronger when the current offer is opened to investors.
Dangote stated, “So, even this one, I’m sure if we are to open for two days and close, the number of shares we want to sell will be all sold out.”
Responding to a question about whether the refinery’s current profitability would be sustained after temporary geopolitical disruptions ease, Dangote said the company’s calculations were based on normal market conditions.
“Okay, well, the refinery, based on the numbers that, you know, we have that have actually come into the market, okay, this IPO we started a long time ago, so it did not start because of the war in the Middle East, no.
“Our own basis of calculation is based on normal days. When I say normal days, before the Middle Eastern crisis. What money can we make when we refine oil? And that is why we actually now sat down and we did our numbers, and we see that, no, it’s good for us to invite other people,” he declared.
Dangote said the company did not intend to build its business model around temporary crises.
The businessman noted, “Of course, Middle Eastern crisis, the crisis of Ukraine-Russia, it’s not going to go on forever; it will stop one day.
“So, you cannot base your business based on that. You know, we don’t base our business based on crisis. No, we base the businesses based on a normal trend. Okay, we don’t go and base it. Whatever that we have over and above, that is icing on the cake. That’s what we are checking.”
He said the refinery was intended as a long-term investment.
“So, we didn’t really say, “Oh no, no, there is a crisis,” because if you base it on that, what about tomorrow when they settle all these issues? Then it means that we are not going to be able to satisfy our own shareholders.
“This is a lifetime investment. This refinery is not about 10 years, 20, 30, or 50 years; it will actually outlive the whole of us here.
“It should be running for the next 50, 60, 70 years, and I don’t believe there’s any one of us here that will live in the next 70 years,” he concluded.
Goldman Sachs has predicted that oil prices could surge to as much as $120 per barrel if attacks on ships in the Middle East intensify.
The development has further triggered a hike in petrol prices with a litre selling at N1310 per litre on Monday from 1,290 per litre on Friday.
Some marketers shared that price movements in some depots could have equally been responsible for the hike.
According to Petroleumprice.ng, an online petroleum products trading platform, Soroman and A.Y.M Shafa as of Monday were trading at N1295 per litre.
On crude prices, Goldman Sachs said “Events over the last few days do suggest that the risk of shipping disruptions broadening and intensifying is an important one,” Daan Struyven, co-head of global commodities research at Goldman Sachs, told Bloomberg TV in an interview on Monday.
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Oil prices have rallied in recent days amid the re-escalation of hostilities and jumped early on Monday in Asian trading to the highest level since mid-July, nearing the $100 per barrel threshold.
The situation escalated further this weekend after the U.S. said it had struck three Iranian oil tankers in response to the IRGC targeting two U.S. warships with ballistic missiles.
Following the attacks, Iranian parliament speaker Mohammad Bagher Qalibaf said that the era of “proportionate responses” is now over, and warned that future retaliations from Iran will be “faster, heavier and more painful.” Iran also said it would announce in the coming days a new “exclusion zone” which “will begin from the line of the U.S. naval blockade, extend toward the Strait of Hormuz, and from this side continue into the Persian Gulf.”
“Any ship that enters this area with the intention of passing through the Strait of Hormuz and is identified will be placed on our sanctions list,” Mohsen Rezaei, the new head of Iran’s Supreme National Security Council, said on Sunday.
Early on Monday, Brent Crude traded at over $97 per barrel, while the U.S. benchmark, WTI Crude, was above $92 a barrel.
Goldman sees “meaningful upside to crude oil prices,” Struyven told Bloomberg, but added that investors should bet on rising natural gas and refined product prices.
In gas and fuels, “the supply shocks are bigger than in the crude market,” the expert said.
“Strike our assets and you get struck,” Iranian Parliament Speaker Mohammad Baqer Qalibaf said on Monday, in what appeared to be a response to U.S. Defense Secretary Pete Hegseth’s warning that Tehran’s oil fleet was “defenseless”.
The United States and Iran traded strikes on oil tankers and warships over the weekend, marking a major escalation of the war between the two countriesthat began when the U.S. and Israel struck Iran on February 28, maritime intelligence firm Marisks said.
“Commercial tankers are now being deliberately used as instruments of reciprocal economic pressure, substantially weakening the previous distinction between military confrontation and commercial shipping,” Marisks said.
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