DANGOTE GROUP - Afrikan Heroes

Dangote Group to Export Fertiliser to U.S., Brazil

June 24, 2021

Dangote Group’s new fertiliser plant in Lagos will commence export of its first shipment later this month or in early July, to the United States. The first shipment will go to Louisiana, United States, Dangote said, adding that the majority of exports from the plant are expected to go to Brazil. According to a Reuters’ report, the new plant at the Lekki Free Zone in Lagos State, designed to produce 3 million tonnes of urea per year, will also supply all the major markets in sub-Saharan Africa.

“Apart from meeting the domestic demand, we are going to be able to earn quite a lot of money exporting the goods to the South American countries,” Dangote told a virtual economic forum hosted by Qatar.

Many in Nigeria also hope the Dangote plant will help alleviate chronically low crop yields in Africa’s most populous country, which are partly due to insufficient access to fertiliser. The fertiliser plant is expected to produce multiple grades of fertilisers to meet soil, crop and climate-specific requirements for the African continent, and for export.

According to the World Bank, Nigeria consumed around 20 kg of fertiliser per hectare of arable land in 2018, compared with 73 kg in South Africa and 393 kg in China. Nigeria’s Central Bank bars the use of its foreign exchange for fertiliser imports as part of a raft of controls aimed at boosting domestic production.

The opening of the fertiliser plant has been pushed back severally for various reasons, including Nigeria’s ailing economy, access to foreign exchange and the COVID-19 pandemic.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Dangote to boost Economic Diversification with Maiden Clinker Shipment

June 15, 2020

As part of efforts aimed at diversifying its portfolio of investment, Dangote Group, one of Africa’s most admired workplace has reaffirmed its status as the biggest cement producer in Africa with the exportation of 27,800 metric tonnes of clinker to a neighbouring African country. With this historic maiden voyage from its Export Terminal located in Apapa Port, Lagos weekend, Dangote has gradually made Nigeria, which until recently was one of the world’s largest bulk importers of cement, first self-sufficient in cement production, and now an exporter of cement clinker to other countries. The exportation of clinker from the Dangote Cement Export Terminal will also place Nigeria as one of the leading clinker exporters in the world. The company is expected to increase the quantity of clinker export to other African countries within the next few weeks, it was further learnt.

In a statement from Dangote Group, this development would enable Dangote Cement take advantage of the African Continental Free Trade Area, and by so doing contribute to the improvement of intra-regional trade within the ECOWAS region. Reacting to this, the Manufacturing Association of Nigeria (MAN) commended Dangote Cement for leading the way for Nigeria to become one of the biggest cement and clinker exporters in the world. Also speaking during the departure of the ship conveying clinker from the Export Terminal at the weekend, Group Executive Director, Dangote Group, Alhaji Sada Ladan-Baki said the increased exportation of clinker and cement to other African countries would not only place Dangote Cement among top clinker exporters in the world, but would also boost Nigeria’s foreign exchange earnings and reduce unemployment in the country.

“The beauty of what we have done is that we are going to be generating foreign exchange for the country in terms of dollars and Euros. For every batch of clinker we export, the money comes back to Nigeria. The amount we are talking about is not small. Presently, Dangote Cement should either be number one or number two exporter of cement in Africa and the revenue we have generated in the form of foreign exchange is running into millions. Today, we have formally launched the Dangote Cement Export Terminal. We are still going to do another major launch when the second ship is going out of the country,” he added.

Alhaji Sada recalled that only a few years ago, Nigeria was one of the world’s largest bulk importers of cement, saying that “Dangote has gradually made Nigeria self-sufficient in cement production as well as an exporter of clinker to other countries. He disclosed that the company would also be launching its export terminal in Onne in the next few days, adding that the export terminal would enable the company export clinker, initially to its grinding facility in Cameroon and then to new grinding plants the company is building across West Africa.

He explained that not only would this generate useful foreign currency for Dangote Cement to support other expansion projects outside Nigeria, it would also help to increase the output of the Nigerian plants, saying these would help to improve job creation and increase prosperity in Nigeria.

He stated: “This terminal will assist Dangote to actualise the full potential of the company’s investment in cement. You know as usual, when the rain comes, sales decline, but not clinker export. This feat by Dangote is going to generate a lot of jobs because the Export Terminal has already created jobs for many Nigerians. As at now, the numbers of employed Nigerians at the terminal have reached 100. We are targeting about 200 to 300 workers in Lagos Terminal alone.

“But, apart from job creation opportunities, the exportation of clinker by Dangote will position the country to participate fully in the Africa Free Trade Liberalisation Agreement when it comes into being, so that Nigeria will be protected against foreign products. It will also help the country compete effectively with every country that is in the business of exportation of clinker. At Dangote Cement, we are going about it aggressively and we are seeing it as an opportunity.”

Alhaji Sada said the company has also concluded plans to increase its clinker and cement export to other countries. “This vessel, being the maiden ship, is exporting 27,800 metric tonnes to Senegal and this is just a tip of the ice-berg as to what we have in plan. What we have in plan is to send clinker from Nigeria to Ivory Coast, Cameroon and Ghana. Cameroon as an example, takes about 82,000 metric tonnes every month. Our target is to export at least 4 million metric tonnes of clinker annually to various parts of Africa.

“That is our target that we hope to achieve within the next one to two years. This particular voyage is going to our sister company in Senegal. We have an integrated plant of 1.5 million tonnes and this one is expected to give the plant additional clinker that is required for the plant to sustain production. In the next one week or two, we are going to be shipping 82,000 metric tonnes to Cameroon in batches of about 25,000 to 29,000 metric tonnes per voyage,” he added.

Speaking on Dangote’s achievement, the Acting Director-General of the Manufacturers Association of Nigeria (MAN), Chuma Oruche praised the wealthiest man in Africa for leading the way in the export of products from Nigeria to other countries. According to him, this feat by Dangote Cement is capable of boosting Nigeria’s foreign earning and reducing unemployment in the country. He said: “The export of clinker by Dangote Cement at the weekend will definitely be beneficial to Nigerian economy in terms of export earnings, job creation and wealth creation for families connected with these achievements.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Nigeria and Ghana top Projects Destinations in the Oil and Gas Industry in 2020

December 11, 2019

Nigeria and Ghana has been identified as leading investment destinations in the oil and gas industry in 2020 based on findings and surveys from the African Energy Outlook 2020. The Report which was launched last month by the African Energy Chamber highlighted the importance of increased infrastructure capacity in Africa’s long-term industrial development.

Spotlighting the $12 billion Dangote Refinery in Nigeria and Ghana’s Tema LNG Terminal, the Chamber noted essential role such projects play in revamping the sector and creating opportunities for private sector investors. “At a time when the low oil price is gripping treasury revenues, private capital is developing key oil and gas infrastructure projects which could have a significant impact on the African energy and power landscape over the next decade,” the report said.

On the Dangote Refinery, the Chamber called attention to the current state of Nigeria’s infrastructure and the contribution the project would have specifically as the country works towards tripling its refining capacity to 1.5 million bpd by 2025 as a means to reduce its reliance on fuel imports. To this, the Report said, “the refinery’s tank farms are set out for completion in Q4-19 and they may be used as a depot before the refinery’s production starts. This would provide an immediate increase to fuel storage capacity.”

Ghana’s determination to become sub-Saharan Africa’s first LNG importer in 2020 is set to become a reality as the Tema LNG terminal project nears completion. The project will be able to cover 25 percent of Ghana’s total electricity generation capacity, with gas providing a cheaper alternative to oil.

“The deal with Rosneft enables Ghana to diversify gas imports away from Nigeria, which has consistently failed to provide the agreed level of supply since the West African Gas Pipeline started operating back in November 2011,” the Chamber explained. Adding that the emergence of offshore storage and regasification technology is enabling smaller, lower-risk, rapid LNG solutions that could be replicated elsewhere in the region in countries with substantial gas reserves.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Dangote Group Appoints Halima Dangote as Head Commercial Operations

November 11, 2019

One of Africa’s largest and most diversified conglomerates, Dangote Group has appointed Halima Aliko Dangote as the Group Executive Director, Commercial Operations of Dangote Industries Limited (DIL). The Dangote Group which is actively involved in manufacturing cement, sugar, salt, flour, poly-products as well as logistics, oil & gas and real estate won the award of the Most Admired Brand in Nigeria last year.The appointment which was made known through a release by the company today pointed out that Halima Dangote is returning to the Group after serving on secondment in several capacities across two of its Business Units over the last five years. Halima is also a Trustee of the Aliko Dangote Foundation, the philanthropic arm of the conglomerate.

In her most recent role, Halima served as Executive Director of Dangote Flour Mills. Remarkably, she led the turnaround of the business from loss in turnover to a profitable status; a feat derived from consistent high performance over time. Previously, she served as Executive Director of NASCON, a manufacturer of salt, seasonings and related consumer products, which are enjoying huge patronage among consumers. She continues to serve as a Non-Executive Director of NASCON. Halima is the president of the Board of The Africa Center in New York, a uniquely focused center providing a forward-looking gateway for engagement with Africa, while encompassing policy, business and culture. She is a Board member of Endeavour Nigeria, and is also a member of the Women Corporate Directors (WCD).

She has over 12 years of professional experience and has held several executive management roles. In her new role, Halima will be responsible for leading the development and implementation of the Dangote Group’s customer strategy to drive customer growth, improve customer relationship management, enhance customer experience and increase long term customer value, according to the release.

She will also be responsible for the implementation of the Group’s shared services strategy with specific oversight for the following functions; Commercial, Strategic procurement, Administration and Branding & Communications. Halima, who has a strong passion for women empowerment, holds a Bachelors’ Degree in Marketing from the American Intercontinental University, London, United Kingdom and a Master’s Degree in Business Administration from Webster Business School, United Kingdom.

She has attended a number of high profile leadership development programmes including: the Programme for Leadership Development (PLD) at Harvard Business School; Executive Development Programme at Kellogg School of Management; Finance and Accounting for Non-Financial Executives at Columbia Business School.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Dangote Refinery Plans To Reduce The West African Crude Oil Importation With 650, 000 Barrels Per Day

April 22, 2019

The Organisation of Petroleum Exporting Countries (OPEC) has noted in its World Oil Outlook that the Dangote Refinery project could refine as much as 650,000 barrels of crude oil per day at full capacity upon completion. This, according to it, is expected to reduce the need for fuel imports in West Africa. This would mean that at that rate, Dangote Refinery when fully in operation, would refine close to 237.3 million barrels per year. Nigeria, alone, imported 22.5387 billion litres of petroleum products worth over N3.24 trillion from refineries abroad in 2017.

According to OPEC, in Africa, there are 50 refining projects, which, if all built, would add nearly five million barrels per day (bpd of new refining capacity to the continent.

The Group Executive Director, Strategy, Portfolio Development and Capital Projects, Dangote Industries Limited, Mr Devakumar Edwin, said OPEC was correct in its estimation, adding that all hands were on deck to deliver the refinery on time.

Key Facts To Note:

Dangote Group’s ongoing refining and petrochemicals project can meet 100 per cent of the domestic demand for petroleum products (petrol, diesel, kerosene and aviation fuel), in Nigeria leaving the surplus for export in line with OPEC’s expectation -Dangote Group said.
This year, the outlook represents a significant reversal from recent history. For the first time in many years, projected firm additions at 1.1 million bpd exceed West African regional demand growth for 2018 to 2023 at 0.7 million bpd.
This change relates primarily to one project in Nigeria now under construction, which is the Dangote Refinery.
Since the project is in West Africa, its implementation does not necessarily alter the situations in North and East/South Africa. What should happen, especially in West Africa, is a reduction in the need and opportunity for product imports.”
Last year’s World Oil Outlook hinted that, in Africa, ‘new projects could improve the situation somewhat toward the end of the period.’ This year, increasing confidence that the Dangote project in Nigeria will go ahead is indeed changing the picture.

Allowing for some uncertainty in the project’s start-up timetable, incremental potential in Africa is expected to continue to lag incremental demand-based requirements through 2020, after which the potential is for a balance or excess requirements.
A deficit of around 0.2 million barrels per day in 2019 to 2020 is estimated to swing to an excess of around 0.3 million bpd by 2022 to 2023.
It must be borne in mind that this regional outlook is unusual in that it hinges largely on a single project.”
The Dangote Refinery is expected to be finished in 2019, with production set to commence in 2020.

Also See: World Bank Invests $200m To Promote Entrepreneurship Projects In Egypt

Charles Rapulu Udoh

Charles Rapulu Udoh a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.