The African Development Bank (AfDB) has reached a $75 million loan agreement with Indorama Eleme Fertilizer and Chemicals Limited, marking a significant investment to amplify Nigeria’s fertiliser production capacity and boost its export potential.
According to a statement from the AfDB, the strategic deployment of funds is earmarked for the expansion of Indorama’s fertiliser production through the addition of a third urea production line, as well as the development of a new port terminal at its Port Harcourt complex.
This expansion is not just a nod to increasing the domestic supply but is designed to position Nigeria as a formidable player in the international fertiliser market.
The envisaged production line boasts an impressive annual capacity target of 1.4 million metric tons of urea, further cementing urea’s status as a cornerstone fertiliser in global agriculture.
With the proposed expansion, the company is not only anticipated to bolster food production domestically but also enhance food security across regional and international markets.
The statement read:
The AfDB’s $75 million senior loan is a fraction of a broader $1.25 billion financing arrangement headed by the IFC. This financial package comprises contributions from a consortium of international development finance institutions and commercial banks.
The collective commitment is a testament to the project’s potential to stimulate agricultural growth, enhance food security, and create employment opportunities, thus contributing substantially to Nigeria’s socioeconomic development.
The statement added:
Ousmane Fall, the Acting Director of Industrial and Trade Development Department at AfDB, expressed pride in the partnership with Indorama, International Finance Corporation (IFC), and other lenders, heralding it as a venture with significant developmental outcomes for Nigeria.
Manish Mundra, Indorama Corporation’s Group Director for Africa, underscored the initiative’s alignment with Nigeria’s industrial growth and economic diversification goals. He stressed the project’s pivotal role in harnessing Nigeria’s strategic geographic position to strengthen its global export capacity, which is expected to soar with the addition of the third production line.
