• Ondo set for industrial revolution, says Aiyedatiwa
• AFC, Dangote Group deepen partnership, seal $600m loan deal for fertiliser expansion
• Nigeria will benefit over $4bn in FX from company’s fertiliser export, says Aliko Dangote
Peter Uzoho in Lagos and Fidelis David in Akure
The President of Dangote Group, Alhaji Aliko Dangote, yesterday revealed plans to develop a large-scale industrial and free trade zone at Olokola in Ondo State, describing it as a power-driven investment hub designed to attract manufacturers and reduce infrastructure constraints for investors.
Dangote disclosed this during a courtesy visit to Governor Lucky Aiyedatiwa in his office in Akure, where he outlined a renewed investment framework covering power generation, cement production, gas infrastructure and industrial manufacturing.
This comes as the Dangote Group has strengthened its strategic partnership with the Africa Finance Corporation (AFC) with the signing of a $600 million loan agreement to support the expansion of its fertilizer production capacity, in a major boost to food security across Nigeria and the African continent.
In Akure, Aliko Dangote, said the proposed Olokola project would go beyond a conventional free trade zone, stressing that it would be fully equipped with power, water and logistics infrastructure to enable investors to operate without delays associated with basic utilities.
“We want to create the biggest free trade zone where investors can just come and plug in. We will generate power, provide infrastructure and remove the bottlenecks around doing business,” he said.
Dangote said the initiative was designed to address Nigeria’s long-standing power deficit, which he described as the country’s biggest industrial constraint for over 30 years, noting that most manufacturers currently rely on self-generated electricity.
He explained that the absence of reliable power had slowed industrial expansion across the country, adding that the new model would integrate dedicated energy supply into the industrial zone.
He also disclosed plans to integrate gas infrastructure through an east-west gas corridor to support energy-intensive industries within the zone.
Dangote said the group had previously attempted to develop investments in Olokola but was constrained by operational challenges at the time, leading to the concentration of projects in Lagos.
According to him, contractors are expected to mobilise to site within three to four months, with full construction scheduled to commence in the last quarter of the year.
He also indicated that the project structure would include government participation, requesting the nomination of a state representative to the board of the industrial zone to facilitate coordination and execution.
Dangote said the initiative would stimulate large-scale job creation and industrial expansion across Ondo State and surrounding regions, noting that similar projects in Lagos had delivered significant employment and export revenues.
Responding, Governor Aiyedatiwa welcomed Dangote’s renewed investment drive, describing it as a major milestone in Ondo State’s industrialisation agenda.
He said the project aligns with his administration’s efforts to position the state as a leading industrial destination in the South-West, noting its strategic location along the Lagos-Calabar Coastal Highway corridor.
Governor Aiyedatiwa also highlighted the state’s deep seaport licence, describing it as a key logistics advantage capable of handling large vessels without transshipment.
He disclosed that limestone deposits in the state had been tested and found suitable for industrial use, signalling potential for cement production expansion.
The Governor said a technical committee had been established to engage with Dangote Group on legal, land, community and operational frameworks, while confirming readiness to nominate a state representative to the project board.
Meanwhile, the Dangote Group has strengthened its strategic partnership with the AFC with the signing of a $600 million loan agreement to support the expansion of its fertilizer production capacity, in a major boost to food security across Nigeria and the African continent.
The loan facility to GreenView Fertilizer Corporation (Greenview), the Dangote Fertlizer Holding Company, will part-finance the expansion of its urea fertilizer production capacity in Nigeria and the development of the plant in Ethiopia.
Dangote Group announced this in a statement yesterday.
According to the statement, the investment forms part of Dangote Group’s broader US$7 billion fertilizer expansion programme, which is expected to increase Dangote Fertilizer’s production capacity in Nigeria from three million metric tonnes per annum (MTPA) to nine MTPA, while also supporting the development of a new three MTPA urea fertilizer plant in Ethiopia.
The programme is expected to materially expand Africa’s fertilizer production capacity, strengthen regional food security, support agricultural productivity, and reduce the continent’s dependence on imported fertilizer.
The financing underscores AFC’s continued confidence in Dangote Group’s vision to drive industrial growth and agricultural transformation through large-scale investments in critical infrastructure.
The statement noted that the facility will be deployed towards expanding the Dangote Fertilizer Plant, one of the largest granulated urea fertilizer complexes in the world, located in Ibeju-Lekki, Lagos State.
This expansion, the group noted, was expected to significantly scale up production capacity, enhance supply chain efficiency, and ensure the steady availability of high-quality fertilizers to farmers across Africa.
It will also help reduce dependency on fertilizer imports, stabilize prices, and improve agricultural yields, thereby strengthening the continent’s food security framework.
Speaking on the development, Aliko Dangote said the expansion was expected to generate over $4 billion annually in export earnings within the next three years.
“What he’s actually given us this money for is a company where, by the next three years, we’ll be able to have an export of over $4 billion worth of urea fertilizer, and I think it is a big contribution to the foreign exchange income of the country… You can continue to count on us.
“When we say that we want to grow our group to $100 billion by 2030, it doesn’t mean that we want to grow alone; we want to grow together, especially with African Finance Corporation among other notable institutions in Africa”, Dangote said.
Commenting on the transaction, President and Chief Executive Officer of Africa Finance Corporation, Samaila Zubairu, was quoted to have said: “This transaction demonstrates AFC’s capital recycling model in action. Following the successful repayment of our earlier investment in Dangote Industries Limited, we are redeploying and doubling that capital into Dangote Group’s next phase of growth.
“By supporting the expansion of Dangote Fertilizer, AFC is backing a proven African industrial champion whose investments will strengthen food security, reduce import dependence, and create long-term economic value across the continent.”
The Dangote Fertilizer Plant currently plays a pivotal role in meeting domestic demand while also exporting to international markets, generating foreign exchange earnings for Nigeria.
With the planned expansion, the company aims to further consolidate its leadership in the global fertilizer market.
