Dangote Fertilizer Ltd. has seen a sharp increase in global demand as the ongoing US‑Israel‑Iran war disrupts fertilizer supplies.
The development was disclosed by Devakumar Edwin, Vice President at Dangote Industries Ltd., during a call with Bloomberg, as reported on the media company’s website on Monday.
The surge in interest reflects global shortages, with buyers turning to Dangote’s Lagos-based facility, Africa’s largest producer of granulated urea and ammonia.
The conflict has heightened supply chain risks and prompted global buyers to seek alternative sources of fertilizers, directly benefiting Dangote Fertilizer.
What they are saying
Edwin explained that the increase in demand is directly linked to the disruption of global fertilizer supplies caused by the war. He emphasized that buyers are increasingly seeking alternatives as Iran’s production slows and natural gas prices rise.
- “Dangote Fertilizer Ltd., one of Africa’s biggest producers of crop nutrients, has seen a substantial increase in demand for its products as the US-Israel war on Iran disrupts supplies,” Bloomberg reported.
- “Demand has gone up substantially due to the shortage in the global market,” Edwin added.
About a third of global fertilizer supplies pass through the Strait of Hormuz, a key maritime passage that has been restricted due to the conflict.
The comments underline how geopolitical events are creating immediate pressures on global commodity supply chains, with Africa’s largest fertilizer producer positioned to meet rising demand.
More insights
Dangote’s Lagos facility, Africa’s largest granulated urea plant, has an annual production capacity of 3 million tons of urea and ammonia.
- Approximately 37% of output is currently exported to the United States.
- Owner Aliko Dangote has stated the company aims to surpass Qatar as the world’s largest urea exporter within the next four years.
- The current global demand surge highlights how geopolitical tensions can rapidly reshape commodity markets, creating opportunities for suppliers able to scale production quickly.
The facility’s strong capacity and strategic positioning make it a key player in the global fertilizer market amid supply disruptions.
Backstory
The US-Israel-Iran conflict began on February 28, 2026, after Israel and the United States launched attacks on Iranian targets, prompting retaliatory strikes from Iran on Israel and neighboring Gulf countries hosting US bases.
- Shipping through the Strait of Hormuz has slowed, with marine insurers withdrawing war risk coverage for vessels in the region.
- Major insurers such as Gard, Skuld, NorthStandard, London P&I Club, and American Club cancelled war risk coverage for ships operating in affected waters.
The U.S. Navy had signaled readiness to escort vessels through the Strait to safeguard energy supplies, while Iran denies fully shutting down shipping, but restrictions remain.
These developments have caused disruptions in both energy and fertilizer supply chains, triggering global market ripples.
What you should know
Dangote Fertiliser Limited (DFL) entered a strategic agreement with Thyssenkrupp Uhde Fertilizer Technology in December 2025 to license UFT Fluid Bed Granulation Technology for four new urea granulation units in Nigeria.
- Each unit will have a nameplate capacity of 4,235 metric tons per day, totaling 16,940 metric tons daily.
- This expansion increases annual urea granule production from roughly 2.65 million tons to over 8 million tons.
- The new facilities will integrate energy-efficient scrubbing systems and Ammonia Convert Technology (ACT) to minimize emissions and eliminate waste streams.
Existing UFT technology units at DFL produce 3,850 metric tons per day each, operating since 2021.
- Nadja Haakansson, CEO of Thyssenkrupp Uhde Fertilizer Technology, said the partnership demonstrates a shared commitment to sustainable industrial development and global food security. Aliko Dangote added that the expansion reflects Nigeria’s growing role as a leading fertilizer producer while supporting agricultural self-sufficiency in Africa.
In a related development, Dangote signed a $2.5 billion deal with the Ethiopian government in August 2025 to build a fertilizer plant in Ethiopia’s Somali region, with Dangote owning 60% and Ethiopian Investment Holdings holding 40%.
