Aliko Dangote, President of Dangote Industries Limited (DIL), has projected a significant boost to Nigeria’s foreign exchange earnings through the company’s ambitious export plans. During a visit to the Nigerian Ports Authority (NPA) headquarters in Lagos, Dangote announced that DIL aims to export 16,000 tonnes of fertilizer daily within the next two years, generating approximately $6.5 million to $7 million in revenue for the Federal Government per day. This substantial contribution is expected to position DIL as a major supplier of foreign exchange for the country. Beyond fertilizer, Dangote also revealed impending plans for coal export, projecting annual exports of 25 million tonnes of various refined products, and 600,000 to 700,000 metric tonnes of polypropylene, highlighting the scale and diversity of DIL’s planned export operations. The interaction between DIL and the NPA underscored the importance of collaboration between the private sector and government agencies in driving economic growth.
Dangote emphasized the critical role of the NPA in facilitating DIL’s vast operations, particularly at the Lekki Free Zone. He described the projected scale, involving approximately 240 crude oil vessels, each carrying one million barrels, and over 600 vessels annually for refined product shipments, in addition to eight vessels for fertilizer. This massive undertaking, unprecedented in Nigeria, hinges on seamless collaboration with the NPA. Recognizing the potential strain on existing infrastructure, Dangote acknowledged the NPA’s need for government support to acquire the necessary equipment, such as tug boats, to handle the increased maritime activity. He pledged DIL’s advocacy for securing the necessary government assistance for the NPA. Furthermore, Dangote forecasted a doubling of Nigerian port operations within the next one to two years, driven by DIL’s expanding export activities, including the existing cement export operations with a dedicated six-million-ton capacity factory.
The meeting between Dangote and the NPA also served as a platform to acknowledge the positive impact of the Federal Government’s naira-for-crude sale policy. This policy, coordinated by the NPA, establishes a one-stop-shop mechanism, enhancing efficiency in transactions and operations between government agencies. NPA Managing Director, Dr. Abubakar Dantsoho, explained that Dangote’s visit was an expression of appreciation for the policy’s success. Since its implementation in October 2024, the NPA has handled 57 vessels monthly, exceeding DIL’s projected annual vessel count of 600, demonstrating the policy’s effectiveness in streamlining port operations. Dantsoho emphasized that inter-agency collaboration, facilitated by policies like the naira-for-crude initiative, is crucial for driving efficiency across various sectors of the economy.
Dantsoho further announced the government’s approval of the National Single Window, a system designed to streamline trade processes by providing a single platform for all trade-related regulatory procedures. The NPA’s near-readiness for the Port Community System, at 95% completion, signals significant progress towards modernizing port operations and enhancing efficiency. These initiatives aim to create a more integrated and efficient maritime environment, supporting growth in trade volumes and further boosting Nigeria’s export capacity. The anticipated improvements in port infrastructure and processes pave the way for smoother operations and facilitate the increased maritime traffic projected by Dangote’s ambitious export plans.
Addressing port capacity expansion, Dantsoho outlined two approaches: brownfield development, involving the renovation and rehabilitation of existing ports, and greenfield development, which entails constructing new ports. He noted that the Tincan Island Port, built in 1977, was the last new port constructed in Nigeria. With government approval secured for the modernization of both Tincan and Apapa ports, construction is expected to commence in the third quarter of the current year. This modernization effort signifies a significant investment in upgrading Nigeria’s port infrastructure, enhancing capacity to handle growing trade volumes and supporting the projected increase in exports from companies like DIL. Modernizing these key ports will play a crucial role in optimizing port efficiency, reducing congestion, and facilitating seamless trade operations.
Overall, Dangote’s visit to the NPA highlighted the crucial synergy between private sector investments and enabling government policies in driving economic growth. DIL’s ambitious export plans, coupled with government initiatives to modernize port infrastructure and streamline trade processes, are poised to significantly boost Nigeria’s foreign exchange earnings, strengthen its position in international trade, and drive overall economic development. The projected increase in export activities promises substantial revenue generation for the government, while creating employment opportunities and promoting economic diversification. The ongoing collaboration between DIL and the NPA underscores the importance of public-private partnerships in unlocking Nigeria’s economic potential and achieving sustainable growth.
