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Nigeria’s President Buhari launches $2.5 billion Dangote Fertilizer Plant. To whose benefit exactly?

Published

2 years ago

March 22, 2022

President Muhammadu Buhari of Nigeria was in Lagos on Tuesday, the commercial capital of Nigeria for the launch of what experts have called the largest fertilizer plant in Africa owned by Africa’s richest man, and President/Chief Executive Officer (CEO) of Dangote Group, Alhaji Aliko Dangote.

According to the official website of the plant, Dangote Fertiliser Plant is Africa’s largest Granulated Urea Fertiliser complex. The plant occupies 500 hectares of land in Lekki Free Trade Zone, Lagos Nigeria. It was built at a cost of $2.5 Billion.

Also at the inauguration of the $2.5 billion project were dignitaries including Lagos State Governor Babajide Sanwo-olu, Central Bank of Nigeria Governor Godwin Emefiele, and Nigeria’s Minister of Trade and Investment Niyi Adebayo.

With food being a basic necessity of life and growing food shortage across the world that has been further enhanced by the ongoing Ukraine/Russia war, the use of fertilizers is central to sustainable productivity in the agriculture sector as the shortage of fertilizers has contributed to the worsening food crisis with about 250 million people going to bed hungry and Africa spending more than $35 billion on food imports annually as it continues to grapple with low agricultural productivity.

The launch of the Dangote plant is timely as many African soils are unable to supply crops with the nutrients they need due to infertility and degradation that has stemmed from inappropriate land-use practices over several centuries.

Beyond serving the Nigeria and Africa fertilizer market, the plant is said to be established to produce 3 million metric tonnes per annum of urea fertilizer in phase 1 which is above Nigeria’s current level of fertilizer consumption in the country which is 1.5 million metric tonnes.

While delivering his speech shortly after the mega project was commissioned, Alhaji Aliko Dangote, said that the products from its newly commissioned fertilizer plant are already in the African market as well as the United States, Brazil, India and Mexico.

If things turned as they seem, the new fertilizer plant should mean a major leap in Nigeria’s agriculture sector with President Muhammadu Buhari’s many agric-based initiatives. However, the peculiarity of Nigeria informs that enthusiasm should be with caution. Amidst the many challenges of industrialization in Nigeria, fingers are crossed on the efficiency of the plant, hopefully, it does not go the way of the Dangote tomatoes processing factory that has repeatedly shut down operation.

Related Topics:Aliko Dangote Dangote Featured fertilizer plant

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Nigeria’s Bola Tinubu presents N27.5 trillion 2024 budget of ‘Renewed Hope’

Published

11 hours ago

November 29, 2023

Ifeoluwa Dada

Exactly six months after his inauguration, Nigeria’s President, Bola Tinubu, presented the N27.5 trillion 2024 budget proposal to a joint session of the 10th National Assembly in Abuja.

The president said, “The 2024 Appropriation has been themed the Budget of Renewed Hope” with intentions to achieve job-rich economic growth, macro-economic stability, a better investment environment, enhanced human capital development, as well as poverty reduction and greater access to social security.

“Defence and internal security are accorded top priority. The internal security architecture will be overhauled to enhance law enforcement capabilities and safeguard lives, property, and investments across the country,” he said in his presentation on Wednesday.

The budget also prioritizes human development, with particular attention to children, whom he called “the foundation of our nation”.

The Nigerian government under Tinubu has sought to stabilize the country’s economy with two major policy actions: the removal of petrol subsidies to address fiscal wastage, and the unification of the exchange rate. Although the policies have yet to positively impact standard of living, Tinubu insisted that the Nigerian economy had performed well in 2023 despite the challenges, and the government continued to meet its obligations.

According to him, “an aggregate revenue of 11.045 trillion naira was projected to fund the 2023 Budget of 24.82 trillion naira with a deficit of about 6.1% of GDP. However, as of September 30, the Federal Government’s actual aggregate revenue inflow was 8.65 trillion naira, approximately 96% of the targeted 8.28 trillion naira”.

Tinubu commended the legislature for its swift consideration and passage of the 2023 Supplementary Appropriation Bill and the 2024–2026 Medium-Term Expenditure Framework and Fiscal Strategy Paper last week. He noted that their “prompt action underscores your devotion to economic development and to the greater welfare of our people.”

Nigeria’s main revenue source is oil, but earnings have been affected by its industrial-scale theft, and dwindling global oil prices. However, it produced 1.49 million barrels of oil per day last month, the most in nearly two years, after increasing its output by 60,000 barrels per day.

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Nigeria’s Tinubu to present N27.5trn budget on Wednesday

Published

2 days ago

November 28, 2023

Ifeoluwa Dada

The Nigerian President, Bola Tinubu, will present the 2024 Appropriation Bill to a joint session of the country’s bicameral legislature, the National Assembly, on Wednesday.

The bill is an increase from the N26.01tn earlier considered by the council, according to the Minister of Budget and Economic Planning, Abubakar Bagudu, who confirmed the approval to State House correspondents after the close of FEC’s weekly meeting presided over by President Tinubu.

In addition, the minister disclosed that the government had projected N18 trillion in revenue for the fiscal year 2024. Bagudu stated that more information regarding the appropriation bill would be made public on Wednesday when the president brought it before a joint session of the National Assembly.

The minister stated that the Council was currently reviewing the Medium-Term Expenditure Framework, which was approved by the National Assembly.

Bagudu said, “Equally, the Federal Executive Council approved the 2024 Appropriation Bill and the presentation of such to the National Assembly by His Excellency, Mr. President.

“The bill has an aggregate expenditure of N27.5tn which is an increase of over N1.5tn from the previously estimated, using the old reference prices.”

He added, “The forecast revenue is now N18.32tn which is higher than the 2023 revenues, including that provided in the two supplementary budgets. Equally and commendably, the deficit is lower than that of 2023. Details of the Renewed Hope Budget will be announced by Mr. President when he makes the presentation to the National Assembly”.

With two key policy initiatives—halting the fiscal bleeding caused by petrol subsidies, and unifying the exchange rate—the Nigerian government, led by Bola Tinubu, has attempted to stabilise the economy of the nation. With its currency value declining even further and the cost of living rising sharply, the results have not been favourable.