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Tuesday, May 17, 2022

Three oil giants, Shell, NNPC, Total to supply Dangote Fertilizer plants 70 mscf gas to boost production

The Nigerian units of Royal Dutch Shell and TotalEnergies and state oil firm NNPC Limited on Wednesday signed an agreement to supply 70 million standard cubic feet of gas to Dangote Group fertiliser plants to help ramp up production and increase exports.

NNPC Group Managing director, Mele Kyari said during the signing ceremony that Dangote’s plants supplied 65 percent of Nigeria’s domestic fertiliser requirements. NNPC runs joint venture companies with Shell and TotalEnergies Nigeria

“It’s government’s drive to ensure that we become self sufficient in the production of fertiliser in our country, and specifically for this year, it’s zero import of fertiliser into our country,” Kyari said.

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The Central Bank of Nigeria (CBN) bars the use of its foreign exchange for fertiliser imports as part of controls aimed at boosting domestic production.

The President of Dangote Group and Africa’s richest man, Aliko Dangote said the new gas supply deal would enable his company to generate more than $1.8 billion in export earnings.

“Apart from Egypt, no … other African country now has our capacity. We will meet the domestic market and then we will be able to export at least $1.8 billion in terms of foreign exchange coming into the country,” he said.

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.

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