Shareholders and Manufacturers of fertilizer on the continent could be in for a good times. According to reports from African Development Bank (AfDB) Africa’s annual fertilizer consumption is expected to reach 13.6 million metric tonnes (mmt) of nutrient by 2030 from its current 7.6 mmt.
The bank noted that fertilizer consumption across the continent has marginally increased since 2010 from 25 to 27 kg per hectare of arable land, and from 12.4 to 14.9 kg per hectare for low-income African countries.
“Consumption in West Africa is forecast to more than double, rising to 4.6 mmt by 2030 from 1.9 mmt now.
“East and West Africa regions are the fastest growing fertilizer consumption hotspots in the world at the moment as farmers look to boost crop yields”.
What this means for Nigeria Fertilizer plants
This may be a good news for investors and producers of fertilizer in the country. Currently, Africa’s richest man, Aliko Dangote, is developing a 1.5 million tonne fertilizer plant in Lagos, which he expects to be commissioned by the end of the year.
Also, the Singapore-owned Indorama Eleme Petrochemicals Limited is seeking to double its Nigerian plant annual output of urea fertilizer to 2.8 million tonnes and plans to list in Lagos next year.
Notore Chemical Industries Limited recently listed its N1.61 billion ordinary shares of N0.50 each at N62.50 per share on the Nigerian Stock Exchange (NSE). The plant currently has a production capacity of 15,000 metric tonnes per day of Urea, 1,000 metric tonnes per day of Ammonia, and 2,000 metric tonnes per day of NPK fertilizer.
Notore is expected to complete a scheduled Turn Around Maintenance (TAM) of its plant by September 2019. Upon completion, it will enable the firm to increase its capacity from its current production level of 1,000 metric tonnes per day to 1,500 metric tonnes per day.