Dangote Fertilizer Ltd. is experiencing a sharp rise in global demand, driven by disruptions to fertilizer supplies stemming from the ongoing US-Israel-Iran war. Devakumar Edwin, Vice President at Dangote Industries Ltd., revealed this development during a call with Bloomberg, highlighting how international buyers are increasingly turning to Africa's largest producer of granulated urea and ammonia, based in Lagos.

The conflict has amplified supply chain risks, prompting global buyers to actively seek alternative sources for fertilizers. Edwin emphasized that this increased interest is a direct consequence of the war's impact on global fertilizer availability, with Iran's production slowing and natural gas prices escalating. A critical factor contributing to the shortages is that roughly one-third of global fertilizer supplies typically pass through the Strait of Hormuz, a vital maritime passage that has experienced restricted transit due to the conflict.

These events underscore the immediate pressures that geopolitical developments are placing on global commodity supply chains. Dangote's facility, with an annual production capacity of 3 million tons of urea and ammonia, is strategically positioned to leverage this situation. The facility's robust capacity and location make it a crucial player in the global fertilizer market during these times of supply uncertainty.

The US-Israel-Iran conflict commenced on February 28, 2026, following coordinated attacks on Iranian targets by Israel and the United States, which led to retaliatory strikes from Iran. While the U.S. Navy has indicated readiness to escort vessels through the Strait of Hormuz to safeguard energy supplies, Iran has denied a complete shutdown of shipping, though restrictions persist. These developments have consequently disrupted both energy and fertilizer supply chains, sending ripples across global markets.

In terms of its operational expansion, Dangote Fertiliser Limited (DFL) had previously entered a strategic agreement in December 2025 with Thyssenkrupp Uhde Fertilizer Technology to license UFT Fluid Bed Granulation Technology for four new urea granulation units in Nigeria. The existing UFT technology units at DFL, operational since 2021, each produce 3,850 metric tons per day.

Furthermore, in a related strategic move, Dangote signed a $2.5 billion deal with the Ethiopian government in August 2025 to establish a fertilizer plant in Ethiopia’s Somali region. Under this agreement, Dangote will hold a 60% stake, with Ethiopian Investment Holdings retaining the remaining 40%.