Dangote Fertilizer Ltd, one of Africa’s largest producers of urea and ammonia, is experiencing a sharp rise in orders as the ongoing conflict involving Iran, the United States, and Israel disrupts global fertilizer supply chains, Nairametrics reported.
Devakumar Edwin, Vice President at Dangote Industries, told Bloomberg that the surge in demand is being driven by shortages in the Middle East, particularly from Iran, prompting international buyers to source from Dangote’s Lagos‑based plant.
Around a third of global fertilizer shipments pass through the Strait of Hormuz, a key shipping lane currently affected by the conflict, which has tightened supply and increased prices for urea and ammonia. Traders and importers are turning to alternative suppliers outside the region, boosting Dangote Fertiliser’s export prospects, as highlighted by GuruFocus.
The Lagos facility, with an annual production capacity of approximately 3 million tonnes, exports a significant portion of its output, including to markets in the United States. Edwin noted that the increased demand reflects global buyers’ search for reliable supply amid ongoing geopolitical disruptions and rising natural gas costs, a key input for fertilizer production.
Analysts say the surge underscores how geopolitical events can quickly reshape critical agricultural supply chains, creating opportunities for producers like Dangote Fertilizer to meet global demand while competitors face production and export challenges.
Image Credit: fertiliser.dangote.com
