• ·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.

The Nigeria Extractive Industries Transparency Initiative (NEITI) has hailed the influx of over $6 billion in Foreign Direct Investments (FDI) into Nigeria’s deepwater and gas projects, describing it as a major boost to the country’s energy sector.

Among the key investments are the Ubeta Gas Project, a $550 million investment projected to deliver 350 million scf/day by 2027; the $5 billion Bonga North Deepwater Project which will unlock 300 million barrels of reserves and adding 110,000 barrels/day production capacity and TotalEnergies’ $510 million divestment of a 12.5 per cent stake in OML 118 to Shell.

NEITI’s Executive Secretary/CEO, Orji Ogbonnaya Orji, gave the commendation during a courtesy visit to NNPC Ltd’s Group CEO, Bayo Ojulari, in Abuja. He noted that recent reforms by President Bola Tinubu’s administration—many spearheaded by NNPC Ltd—had reversed over 15 years of stagnation in oil and gas investments.

He cited landmark transactions such as Oando Plc’s $783 million acquisition of NAOC from Eni (August 2024), Seplat Energy’s $1.2 billion purchase of ExxonMobil’s MPNU (December 2024), and the Renaissance Consortium’s $2.4 billion acquisition of Shell Petroleum Development Company (March 2025). According to him, these deals underscore a shift towards greater indigenous ownership, with Nigerian companies now controlling over 50per ecent of oil and gas production.

“This trend strengthens domestic resource mobilisation, curbs capital flight, creates jobs, and reinforces national pride and sovereignty,” Ogbonnaya Orji said.

He further applauded the Federal Government’s initiatives on the Compressed Natural Gas (CNG) Programme and the AKK Gas Pipeline Project, describing them as vital to energy security and employment generation.

Ogbonnaya Orji urged NNPC Ltd to sustain transparency, accountability, and efficiency while deepening collaboration with NEITI. He emphasized that Nigeria’s oil and gas gains could only be consolidated in a stable, competitive, and transparent operating environment.

“Together with civil society, industry, and government, we can consolidate indigenous leadership of Nigeria’s oil and gas sector while creating an enabling environment for global investors,” he said.

NEITI also pressed NNPC Ltd to restore critical disclosures—including audited financials, production data, and revenue reports—that have become irregular in recent years. Ogbonnaya Orji stressed that timely publication of such data was essential to Nigeria’s reputation as a global transparency leader, especially ahead of the country’s next EITI Validation.

To strengthen compliance, NEITI recommended the establishment of a dedicated EITI/NEITI Desk within NNPC Ltd, led by a senior officer with direct access to the Group CEO.

“NNPC must stand as a model of corporate governance—competing shoulder-to-shoulder with Saudi Aramco, QatarEnergy, and Petronas,” Ogbonnay Orji said. “Individuals will come and go, but NNPC Limited must endure as a global energy giant.” he added.

Nigeria has reaffirmed its commitment to deepening strategic alliances with Japan and other international partners during the Ninth Tokyo International Conference on African Development (TICAD 9) in Yokohama, Japan.

The Nigerian delegation, led by President Bola Ahmed Tinubu, participated in high-level engagements that prioritized power, infrastructure, and industrial transformation as critical levers for sustainable development.

Speaking at the summit, President Tinubu emphasized that Nigeria’s participation at TICAD 9 was not about trade exhibitions, but about forging strategic, outcome-driven partnerships that would deliver tangible results for the Nigerian people. He stressed that Nigeria is deliberately shifting from planning to implementation, from agreements to delivery, and from promises to measurable results.

At TICAD 9, the Honourable Minister of Power, Chief Adelabu who was part of the national delegation held high-level engagements with Japanese stakeholders, including Toshiba, Hitachi, Japan’s Transmission & Distribution Corporation, and Energy Exchange corporations, focusing on transmission infrastructure, operational efficiency, and strategies to reduce system losses.

These engagements built on the recent Federal Executive Council approvals for counterpart funding of ₦19,083,192,805.30 to catalyse a loan funding of $238 million from the Japan International Cooperation Agency (JICA).

This loan funding will support the expansion of the national grid with the addition of 102.95km of new 330kV double circuit (DC) line, 104.59km of new 132kV double circuit (DC) line, four 330/132/33kV substations, two132/33kv substations, two 330kV line bays extension, two 132kV line bays extension, and one 132kV Substation.

During this engagement, the Minister also announced that Nigeria is advancing a $190 million renewable energy loan facility supported by the Japan International Cooperation Agency (JICA), designed to scale distributed renewable energy solutions across underserved communities.

This builds on the recently launched $750 million World Bank Distributed Access through Renewable Energy Scale-up (DARES) programme under the Mission 300 Compact, which aims to bring clean and reliable electricity to more than 17 million Nigerians.

In parallel, three substations funded by JICA through a $32 million grant are set for commissioning in Apo (FCT), Keffi (Nasarawa State), and Apapa (Lagos State). These projects will directly strengthen supply reliability to households, businesses, and industrial clusters, including critical facilities such as the Lagos Port and surrounding industrial areas.

In addition, through the partnership with JICA, the National Power Training Institute of Nigeria (NAPTIN) has commissioned a state-of-the-art training equipment in Abuja to strengthen the skills of distribution engineers and tackle network losses.

This facility is designed to deepen local expertise and promote long-term sustainability in sector operations through capacity development which remains a cornerstone of Nigeria’s power sector strategy.

Speaking during a panel session titled “HICKARE Africa: Harnessing Innovation, Co-creation, and Knowledge for Accessible and Resilient Energy for Africa,” Minister Adelabu highlighted Nigeria’s current energy realities, noting that only 55–60 percent of the country’s population of over 200 million has access to electricity, much of which remains unreliable.

He explained that the Federal Government is addressing this gap by expanding grid access in urban areas while simultaneously accelerating off-grid solutions, including solar mini-grids and standalone systems, for rural and peri-urban communities.

Despite persistent challenges such as limited access to affordable capital, cost barriers for rural households, and under-utilization of productive-use equipment, Minister Adelabu reaffirmed the government’s commitment to overcoming these obstacles through supportive policies, strategic private-sector partnerships, and local manufacturing of renewable energy components.

The Minister of Power expressed deep appreciation to JICA and the Government of Japan for their long-standing support to the Nigeria’s power sector, recognizing JICA as a reliable partner in advancing the country’s energy transition and expanding access to reliable, affordable, and sustainable electricity. Minister Adelabu highlighted JICA’s contributions across infrastructure development, technical studies, training, and renewable energy financing and expressed optimism for further strengthened collaboration and partnership between the Governments of Japan and the Federal Government of Nigeria.