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Dangote’s fertiliser which operates a natural gas based granulated urea fertiliser manufacturing plant, was hit by gas pressure and supply interruption leading to low capacity utilisation rates of 32% in 2022.
However, utilization is expected to gradually improve to 72% by 2025, according to Fitch.
Sale of urea will be mostly geared towards exports to Africa, North America and Latin America, targeting 75% of production, with the balance to be sold locally.
The fertiliser business began operations in 2021 for Line 1 and Line 2 began in 2022. Dangote Fertiliser comprises of two 4,000 tons per day (TPD) urea production lines, positioning the Dangote Group as a leading manufacturer of urea fertiliser globally.
Dangote fertiliser contributed 17% to Dangote Industries Limited’s (DIL) consolidated EBITDA in 2022.