Dangote Urea: Nigerian Investment Promotion Commission Confirms 1Q Start-Up

The Nigerian Investment Promotion Commission (NIPC) this week said Dangote Industries’ ammonia and granular urea complex in the Lekki Free Trade Zone, about 50 km east of Central Lagos, is set to commence full operation in the first quarter of 2021. This follows reports by Green Markets‘ sources last week that the facility was expected to start production in time to begin serving Nigeria’s late-winter and full spring demand (GM Jan. 29, p. 7).

This new facility – a first phase – comprises a 2,200 mt/d ammonia unit, a 3,850 mt/d urea unit, and a 3,850 mt/d urea granulation unit, with capacity to produce some 1.5 million mt/y of granular urea once fully ramped up.

After meeting local demand, urea from the plant is expected to be targeted for export to Latin America. Dangote previously has indicated about 25 percent of the plant’s granular urea output will go to meet domestic consumption, while 75 percent of the output will be marketed for export.

The Nigerian group has experienced serial push-backs of the plant’s start-up, most recently due to the COVID-19 pandemic. It originally had targeted urea production to start in late 2018.

The group has a second production phase under development at the site, which, when completed, will take granular urea production capability to 3 million mt/y. NIPC put the cost of the first phase of the project at $2.5 billion.