Category

Countries

Nigerian Firms to Earn N1.4trn in Urea Global Market with Fertiliser Products
Nigerian Firms to Earn N1.4trn in Urea Global Market with Fertiliser Products

Nigerian Firms to Earn N1.4trn in Urea Global Market with Fertiliser Products

  • 15-Mar-2023 11:44 AM
  • Journalist: Yage Kwon

Nigeria: Nigeria is in the global spotlight as two of its major fertiliser producers, Dangote Fertilizer Plant and Indorama-Eleme Fertilizer and Chemical Limited, are set to secure a share of $2.5billion from the $32.4billion Urea market this year. This demand for the agricultural input has grown substantially and Brazil has placed an order for 700,000 tonnes valued at N178.8billion ($387.8million) from Nigeria just this year alone. Combined, these two Nigerian giants have the potential to rake in N1.4trillion ($2.5billion) or 7.7 per cent of total global Urea sales this year, proving that they are serious players in the global fertilizer industry.

Two of Nigeria’s leading Urea producers, Dangote and Indorama, have the capacity to produce a combined 4.4 million tonnes of Urea per annum. Dangote produces three million tonnes while Indorama produces 1.46million metric tonnes at an estimated global price per tonne of $554 as of March 2023.

Currently, India needs 11 million tonnes, Brazil requires 7.1 million tonnes, the US needs 4.5 million tonnes, Turkey needs 2.5 million tonnes, Australia needs 2.4 million tonnes and Thailand needs 2.4 million tonnes. Apart from Dangote and Indorama, there are other key competitors in the global Urea market such as EuroChem Group DF, Nutrien, Hubei Yihua Chemical Industry etc.

According to Nigerian Ports Authority (NPA) shipping data between January and first week of March 2023, eight vessels ferried out 229700 metric tons valued at N59 billion ($127.3million). In the first quarter of 2022 alone, National Bureau of Statistics (NBS) reported that Nigeria's exports for Urea amounted to N208.39 billion.

The latest shipping figures showed that six vessels left the ports of Dangote and Indorama with a total of 269,700 tonnes of Urea. The largest shipment, totalling 36,000 tonnes, was carried on Crowned Eagle. Desert Moon had 30,000 tonnes onboard; Tai Honesty 25,000 tonnes; Lady Aillar 18,000 tonnes; Penguin Island 30,000 tonnes; and Bittern 30,000 tonnes. Additionally, Vindoniss and Victoria departed from Indorama port with 40,000 tonnes and 20,700tonnes respectively.

In November 2022, the Nigerian Export Promotion Council (NEPC) revealed that Urea topped the list of exports with 32.87 per cent. This was due to disruption created by the ongoing Russia-Ukraine war, which opened an avenue for Nigeria’s fertilizer industry to thrive. Out of 1,172 exporters, Indorama-Eleme Fertiliser and Chemical Limited took the lead with 23.25 per cent of exports. Five vessels left Nigerian ports carrying 174,579 metric tonnes of bulk Urea worth N88.7billion ($118.4million) to Brazil, India, Argentina and Uruguay during this time period, when the price of Urea had increased to $678 per tonne in the global market.

The Nigerian Ports Authority's shipping data revealed some impressive figures for vessels leaving Lagos Port Complex recently. Carlota Bolten left with 22,000 tonnes of cargo, while Indorama in Onne saw Santy leave with 33,275 tonnes. AS Selina, Bulk Pride and Desert Moon each left with 33,275 tonnes, 41,900 tonnes and 44,129 tonnes respectively.

In September, the National Ports Authority (NPA) reported an increase in shipments from Nigeria's ports. Data showed that Sea Venus, Genco Magic, Hinoki, Alda and Pegasus ferried a total of 87,000 tonnes of goods over the June-August 2022 period. Of these totalled imports and exports, Brazil alone imported N63.11billion worth of Urea from Nigeria in 2021. At a presentation of the 2022 non-oil export report in Abuja, Dr Ezra Yakusak, Executive Director/ CEO of the Nigerian Export Promotion Council (NEPC), reiterated this information and added that Nigeria products have been exported to 122 countries with Brazil being its highest importer at 12.27%.

Related News

US Urea Prices Strengthen amidst reviving demand and Short Supply, Asia Witness Major Slump
  • 28-Mar-2024 2:12 PM
  • Journalist: Jai Sen
NextEra's Fertilizer Facility Moves Ahead; Second Plant Drops Out
  • 06-Mar-2024 5:26 PM
  • Journalist: Patrick Knight
Global Urea Market improves in February 2024 taking Support from Reviving Demand
  • 07-Mar-2024 3:19 PM
  • Journalist: Rene Swann
NextChem Wins Bid for Urea Plant Project in Egypt
  • 27-Feb-2024 2:56 PM
  • Journalist: Xiang Hong