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Dangote, Ethiopia sign deal for 3mmt fertiliser plant

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  • ·To become second Urea producer in Sub-Saharan Africa

The Dangote Group yesterday signed an agreement to develop, construct, and operate a world-class urea fertiliser production complex in Gode, Ethiopia. Once consummated, Ethiopia will become the second in Sub-Saharan Africa to own a Urea Plant, with a capacity of three million metric tonnes.

The agreement underscores the position of the President of Dangote Group, Aliko Dangote, who firmly believes that “it is only Africans who can develop Africa.”

“Both Tanzania and Mozambique, in the past decade, have not been able to build a Urea Plant, despite having a large deposit of Gas in their respective countries. They have both depended on imports, as no foreign investor was willing to stake their funds into the project.”

On Thursday, Ethiopian Investment Holdings (EIH), the strategic investment arm of the Government of Ethiopia, and Dangote Group announced the signing of a comprehensive shareholders’ agreement to develop, construct, and operate a world-class urea fertiliser production complex in Gode, Ethiopia.

Under the partnership structure, EIH will hold a 40 per cent equity stake, while the Dangote Group will maintain a 60 per cent ownership of the transformative project, representing one of the largest industrial investments in Ethiopian history.

The ambitious project will establish one of the world’s largest single-site urea fertiliser production complexes, with production facilities boasting a combined capacity of up to three million metric tonnes per annum. The facility will rank among the top five largest urea production complexes globally.

Under the agreement, the two companies will jointly develop, own, construct, operate, maintain, insure, and finance the state-of-the-art urea fertiliser plants and associated infrastructure. The comprehensive development includes advanced gas transport pipelines to evacuate natural gas from Ethiopia’s Hilal and Calub reserves, storage facilities, logistics infrastructure, and export capabilities designed to serve both domestic and regional markets.

The agreement also provides for potential expansions, upgrades, and similar fertiliser production initiatives in ammonia-based fertilisers, including ammonium nitrate, ammonium sulfate, and calcium ammonium nitrate, further cementing Ethiopia’s position as a regional fertiliser production hub.

The Project Development Costs are estimated not to exceed $2.5 billion USD, with completion targeted within 40 months from commencement. A significant component of this investment includes the construction of a dedicated pipeline infrastructure to transport natural gas from Ethiopia’s proven Hilal and Calub gas reserves to the Gode production facility, ensuring a reliable and cost-effective feedstock supply for the fertiliser complex.

This substantial investment underscores both companies’ commitment to transforming Ethiopia’s agricultural sector and enhancing food security across the region. The project is expected to significantly reduce Ethiopia’s dependence on fertiliser imports while creating thousands of direct and indirect employment opportunities in the Somali Regional State and beyond.

Aliko Dangote commented: “This partnership with the Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialise Africa and achieve food security across the continent. The strategic location of Gode, combined with Ethiopia’s abundant natural gas resources from the Hilal and Calub reserves, makes this an ideal location for what will become one of the world’s largest fertiliser complexes.

“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 and a catalyst for agricultural productivity throughout the region. The 60-40 partnership structure reflects our commitment to this transformative project while ensuring strong Ethiopian participation.”

The Chief Executive Officer of Ethiopian Investment Holdings, Dr. Brook Taye, stated: “This landmark agreement with Dangote Group marks a significant milestone in Ethiopia’s journey toward industrial self-sufficiency and agricultural modernisation. As the strategic investment arm of the Government of Ethiopia, EIH is proud to secure a 40 per cent stake in what will be one of the world’s largest urea production facilities. The project aligns perfectly with our national development priorities and will substantially enhance our agricultural productivity while positioning Ethiopia as a regional hub for fertiliser production.

“The utilisation of our domestic Hilal and Calub gas reserves through dedicated pipeline infrastructure ensures energy security and cost competitiveness for decades to come. We are confident that this partnership will deliver tremendous value to Ethiopian farmers, contribute to food security, and generate substantial economic benefits for our nation.”

The Gode fertiliser complex will play a crucial role in supporting Ethiopia’s agricultural sector, which employs over 70 per cent of the country’s population.

By ensuring reliable access to high-quality fertilisers at competitive prices, the project is expected to boost crop yields, improve farmer incomes, and contribute to national food security objectives. With its three million metric tonne annual capacity, the facility will rank among the world’s top fertiliser production complexes, while significantly exceeding the capacity of most existing facilities worldwide.

This scale positions Ethiopia as a major player in the global fertiliser market and a key supplier for the African continent. The partnership leverages Dangote Group’s proven track record in large-scale industrial projects across Africa and Ethiopian Investment Holdings’ role as the government’s strategic investment vehicle with deep understanding of the local market and regulatory environment.

The pipeline connection to the Hilal and Calub gas reserves ensures long-term feedstock security and cost competitiveness in global markets. The project also supports broader regional integration objectives by creating a reliable supply of fertilisers for neighboring countries, potentially reducing import costs and improving agricultural productivity across East Africa and beyond.

 

Energy

Dangote to deliver $16b East Africa Refinery in 40 months

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• Offers jobs to Lamu graduates, to train over 1,000 indigenes

• Reserves 30% equity for East African countries

• President Ruto projects 60,000 jobs, 1,000MW power

• Obasanjo, African leaders hail Dangote as industrialisation pathfinder

 

By Oluwayanmife Lucas

 

Africa’s drive for industrial self reliance received a major boost yesterday as Kenya President William Ruto and President/Chief Executive, Dangote Industries Limited, Aliko Dangote, joined African leaders to break ground on a $16 billion petroleum refinery and petrochemicals complex in Lamu, Kenya, designed to process 700,000 barrels of crude oil per day and serve markets across Eastern Africa.

 

The facility, which is expected to be delivered within 40 months, has an ambitious local content programme that will provide jobs for qualified Lamu graduates and train more than 1,000 young people from the county. Besides, 30 per cent equity in the 700,000 barrels per day refinery is being offered to East African countries, thereby opening the landmark project to regional ownership as part of a broader strategy to strengthen energy security and retain more of Africa’s wealth within the continent.

 

According to Dangote, the project would be executed at speed, assuring the gathering that the refinery would be completed within 40 months. He said the company had already begun mobilising equipment and technical resources for the project and would draw extensively from lessons learnt in delivering the Dangote Petroleum Refinery in Lagos. He assured that the Kenyan refinery would be one of the fastest major projects undertaken by the Group, as the company seeks to demonstrate that African businesses can execute complex industrial projects at globally competitive scale and speed.

Dangote placed local participation at the heart of the project, announcing that qualified graduates from Lamu would be offered opportunities to work on the development, while more than 1,000 young people from the host communities would receive technical and vocational training to prepare them for jobs within the refinery and its emerging industrial ecosystem. The Group will establish a training school to develop the technical skills required by the refinery, with emphasis on equipping local young people to participate directly in construction and subsequent operations. Dangote said the objective was to ensure that the economic footprint of the investment extended well beyond the refinery.

“We want young Kenyans and East Africans with skills here. We want local businesses to become suppliers. We want entrepreneurs around this project,” he said. “For me, the true measure of this project will not be the height of these towers or the number of barrels it processes.”
Instead, he said its success would also be measured by young Kenyans acquiring engineering and technical skills, local entrepreneurs building businesses around the investment and communities enjoying improved livelihoods.

“Industrialisation must have a human face. It must create dignity. It must create jobs. It must create opportunities. It must create hope,” Dangote said.

President Ruto put the cost of the development at $16 billion, or about KSh2 trillion, describing it as a “generational undertaking” designed to serve not only Kenya but the wider Eastern African region. The project is designed to process about 700,000 barrels of crude oil daily and generate up to 1,000 megawatts of electricity. It will also include polypropylene and base oil production as part of an integrated refining and petrochemicals complex.

Ruto reinforced the employment commitment, saying current projections envisage about 60,000 direct and indirect jobs from the development. The President directed technical and vocational institutions and universities to prepare welders, technicians, engineers and managers for the opportunities, insisting that young people from Lamu and neighbouring communities must be given a fair opportunity to compete for the jobs. Ruto said the construction phase alone was expected to inject more than KSh2 billion monthly in wages into the economy, with the money circulating through shops, hotels, restaurants, transport, housing and other businesses.

 

In another significant move towards regional economic integration, Dangote disclosed that 30 per cent of the refinery’s equity would be made available to East African countries, allowing governments in the region to participate in the ownership and future value created by the project. He said Kenya and Rwanda had already moved quickly to take advantage of the opportunity. The ownership model fits into Dangote’s broader argument that African countries and investors should not merely host major industrial projects but should increasingly participate in their ownership and prosperity. Dangote said the refinery had been designed as a regional asset serving Kenya, Uganda, Rwanda, Tanzania, Ethiopia, South Sudan, the Democratic Republic of Congo and other markets.

 

“This refinery is therefore not simply about one country. It is about a region,” he said.
The industrialist said Africa could no longer afford an economic model under which crude oil, minerals and agricultural commodities were exported while the continent imported the finished products derived from them.

“Africa cannot build lasting prosperity by exporting what it has and importing what it needs,” he said. “We must refine more of what we produce. We must process more of what we produce. We must retain more value here at home in Africa.”

The Governor of Lamu County, Issa Timamy also used the groundbreaking to condemn attempts to stop the project through litigation, describing those behind the move as working against an investment capable of transforming the economic fortunes of the county. Addressing residents partly in Swahili, the Governor said those who had gone to court against the development did not represent the aspirations of the people of Lamu. He argued that opponents of the project were seeking to frustrate an investment that could provide opportunities for thousands of young people and insisted that residents would not allow the county’s development prospects to be undermined.

The Governor maintained that the project would go ahead and be completed, while calling on young people and businesses in the county to prepare themselves for the opportunities that would accompany the investment. He said Lamu had for too long been rich in history, culture and natural resources but left behind in the march of development, adding that the refinery offered the county an opportunity to become a major investment and industrial destination.

He nevertheless stressed the importance of protecting Lamu’s mangroves, fishing grounds, coastline and cultural heritage, calling for responsible development that would allow industrialisation and environmental protection to coexist.

 

Former Nigerian President Olusegun Obasanjo led other African leaders in celebrating Dangote’s emergence as one of the continent’s leading champions of industrialisation, recalling his evolution from trading and importation into large scale manufacturing. Obasanjo said the transformation demonstrated the importance of African governments creating the right environment for indigenous entrepreneurs to invest, manufacture and compete at scale. For the former President, the Lamu investment represented a further expansion of that industrialisation philosophy from West Africa into East Africa.

 

Obasanjo said he was particularly pleased to witness the project because of its potential to deepen economic integration between the two regions and demonstrate what African entrepreneurship, supported by purposeful political leadership, could accomplish. Ugandan President Yoweri Museveni said Africa could not continue exporting raw materials while surrendering the jobs and wealth associated with processing them elsewhere. He backed the regional ownership proposal, describing the opportunity for East African countries to acquire equity in the refinery as a smart approach to ensuring that the region participated not merely as a market but also as an owner.
Prime Minister of Ethiopia, Abiy Ahmed, said the refinery would strengthen East Africa’s energy security and reduce its vulnerability to disruptions in global petroleum markets.

He said Dangote’s record in cement, fertiliser and petroleum refining had demonstrated that African industrial enterprises could operate at global scale. “East Africa is not only a market. It is a place to produce, to build and to create value,” Abiy said.

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Property & Environment

Lagos adopts digital building permit to boost smart city

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By Monireoluwa Lucas

The Lagos State government has ended the manual processing of building and physical planning approvals as part of efforts to deepen digital governance and advance its smart city ambition.

The state said all applications for planning permits must now be submitted and processed exclusively through the Electronic Physical Planning Processing System (EPPPS), bringing to an end the paper-based approval process.
The Commissioner for Physical Planning and Urban Development, Dr Oluyinka Olumide, disclosed this at a public sensitisation programme organised to engage built-environment professionals on the implementation of the electronic planning approval system.

Olumide said the directive, which took effect on April 1, 2026, was designed to eliminate the delays, multiple human interfaces and other challenges associated with the manual processing of planning approvals.
According to him, the transition to EPPPS is not merely a technological upgrade but a fundamental reform aimed at making the planning approval process more transparent, efficient and user-friendly.
He said the system would reduce complaints associated with physical interaction between applicants and officials while enabling applicants to submit documents, monitor their applications and receive updates electronically.

“The government has created timelines and simplified the procedures to make the system user-friendly. We are appealing to the public and professionals to embrace the platform because the manual process, with its bulky paperwork, has been outlawed,” he said.

Olumide, however, warned applicants against submitting false information or forged documents, saying inconsistencies would be detected during the electronic processing of applications and could result in delays.
“If you submit a doctored survey plan or fail to meet requirements such as the stipulated setbacks and other necessary documentation, your application will be delayed until you comply. The system is designed to identify such inconsistencies,” he said.

The commissioner said the EPPPS had achieved full operational readiness, with all relevant personnel trained and computer systems and internet connectivity deployed across the district offices.

He added that applications submitted outside the electronic platform would no longer be recognised as valid planning applications.

 

“All applications must now go through the EPPPS platform exclusively. Anyone processing planning permits manually from this date is engaging in an illegal activity,” Olumide said.
The Permanent Secretary of the ministry, Wasiu Olayinka, said the reform was intended to make the process of obtaining building approvals easier for Lagos residents and prospective property owners.

He said applicants would no longer need to make repeated physical visits to government offices, as the digital platform would enable them to apply for approvals from their homes or offices.

According to Olayinka, the full implementation of the EPPPS represents a major step in the state’s effort to modernise physical planning and improve service delivery.
Also speaking, the Special Adviser to Governor Babajide Sanwo-Olu on Taxation, Abdul-Kabir Opeyemi Ogungbo, said the electronic system would strengthen transparency, accountability and data-driven planning in the state.

Ogungbo urged residents, developers and built-environment professionals to make full use of the platform, noting that applicants could track the progress of their applications and receive notifications without having to visit government offices.

He said the system would also help the government move away from a planning environment characterised by physical files, long queues and missing documents.

“We are aggressively moving away from the era of dusty files, long queues and missing documents. This software will strengthen the integrity of our land records and help boost investor confidence,” he said.
The guest speaker, Prof. Timothy Nubi, however, said digitising the approval process must be accompanied by broader reforms in the real estate sector if the industry was to contribute more significantly to economic development.

Nubi lamented what he described as the failure of real estate to attain its full potential in Nigeria, arguing that weak infrastructure, inadequate investment and policy challenges had constrained the sector.

He said secure land titles remained critical to unlocking the economic value of property, noting that untitled assets represented a significant pool of dead capital globally and in Africa.
“When real estate begins to play its proper role in the economy, the sector will become healthier. Without title, you cannot create wealth in the way we see in countries such as the United States and Dubai,” Nubi said.

He cited estimates putting global dead capital held in untitled assets at about $9.3 trillion, with more than $1 trillion reportedly locked in Africa.
Nubi also questioned claims that a large proportion of properties in Lagos lacked proper titles, linking the problem to the continued development of estates without the necessary government approvals.

He urged the state government to examine why people invest substantial sums in land and properties only to commence construction without obtaining planning approval.

While commending the transition to digital processing, Nubi called for the new system to be genuinely seamless and free from unnecessary bureaucracy.
He said an efficient approval process would not only improve compliance but also encourage investment and help unlock greater economic value from Lagos’ rapidly expanding real estate market.

 

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Banking

Autonomous FX sources dominate $10.82b inflows in July, say CBN

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• Says $950m inflows from IMTOs, foreign portfolios hit $6.31b

• Lists banks’ roles in achieving $1tr economy by 2030

By Monireoluwa Lucas

The Central Bank of Nigeria (CBN) today said sources of foreign exchange inflows into the economy has changed significantly, with autonomous sources taking the lead.

Speaking at the ongoing 38th FICAN conference held in Abuja, CBN Deputy Governor, Economic Policy, Dr. Muhammad Sani Abdullahi, disclosed that of the $10.82 billion in total inflows recorded in July 2026, $7.33 billion, or nearly 68 per cent, came from autonomous sources.

The breakdown showed that remittances through International Money Transfer Operators (IMTOs) reached $950 million that month while net foreign portfolio inflows totalled $6.31 billion in January to August 2026.

He explained that portfolio flows can reverse, but the broader improvement in supply has reduced the market’s reliance on direct CBN provision.
“Our external buffers are stronger. Gross reserves stood at US$55.60 billion on 11 September 2026, while the end-August stock provided 11.3 months of import cover,” he said.

Speaking on the theme: “Towards a Robust and Resilient Financial System in the Post-Banking Sector Recapitalisation”, he said Nigeria’s aspiration to build a $1 trillion economy by 2030 requires banks that are capable of mobilizing and allocating capital on a much larger scale.
Abdullahi, said stronger capital buffers should enable banks to finance local infrastructure, support industrial expansion, facilitate international trade, and compete more effectively in regional and global markets.

He said stronger banks also provide greater capacity to absorb losses during economic stress and sustain investment in innovation and digital transformation.
“The environment in which these banks operate is increasingly interconnected. Geopolitical uncertainty, climate-related risks, cyber threats, and rapid technological change can transmit shocks across borders through financial trade and technology, affecting capital flows, exchange rates, and external governments. Resilience, therefore, requires institutions to anticipate emerging risks, absorb shocks, adapt, and recover. The lessons of past financial crises underlie the value of aggregate capital, but also the need to prepare for risks that may take unfamiliar forms,” he said.

According to him, capital is therefore the starting point.
“Boards and management must maintain sound controls, recognize risks early, and learn to identify viable projects. Sound corporate governance must underpin that growth. Boards and management teams must demonstrate integrity, accountability, and transparency. Strengthen internal controls and guard against excessive restating. Their decisions must protect the interests of depositors, investors, and other stakeholders,” he said.

He directed that risk management be extended beyond credit risk to the market, utility, and operational risks, as well as cybersecurity, third-party dependencies, and private-related financial risks.

He said the environment in which these banks operate is increasingly interconnected.
“Geopolitical uncertainty, climate-related risks, cyber threats and rapid technological change can transmit shocks across borders through financial, trade and technology channels, affecting capital flows, exchange rates and external buffers.

“Resilience therefore requires institutions to anticipate emerging risks, absorb shocks, adapt and recover. The lessons of past financial crises underline the value of adequate capital, but also the need to prepare for risks that may take unfamiliar forms,” he said.

Abdullahi said the CBN will continue to pay close attention to governance, asset quality, liquidity and large exposures. “We will also expect banks to protect customer data, maintain reliable payment services and recover quickly from disruptions. A stronger balance sheet must be matched by stronger management of risk.
“As more financial services move to digital channels, banks must invest continuously in cybersecurity, data protection, disaster recovery and business continuity. Innovation brings opportunities, but public trust depends on customers being able to transact securely and access their funds reliably, including when systems come under pressure,” he said.

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