The African Development Bank has signed a $75million loan agreement with Nigeria’s Indorama Eleme Fertiliser and Chemicals Limited, targeted at boosting fertiliser production and exports.
According to a statement by the bank at the weekend, the loan will enable Indorama to increase its fertiliser production and develop a port terminal for exports, supporting food production and security across regional and international markets, while fostering job creation in Nigeria.
The expansion will see a development of a third urea fertiliser production line and a new shipping terminal at Indorama’s facilities in Port Harcourt.
“The new production line is expected to have an annual capacity of 1.4million metric tonnes of urea, one of the most widely used fertilisers worldwide. The new production line and terminal, which will help meet the growing global demand for fertiliser, are expected to create up to 8,000 direct and indirect jobs in Nigeria,” the statement explained.
“The African Development Bank is proud of its continued partnership with Indorama, the IFC and other lenders on this critical project as it is aligned with our strategic priorities to Feed Africa and Industrialise Africa, while generating significant development outcomes in Nigeria,” said Ousmane Fall, acting Director of Industrial and Trade Development Department at the African Development Bank.
Also speaking, Manish Mundra, Group Director for Africa, Indorama Corporation, said, “The establishment of this fertiliser plant underscores Indorama’s unwavering commitment to Nigeria’s industrial growth, economic diversification, and leveraging its strategic geographic location.
“This landmark financing represents a pivotal moment in Nigeria’s journey towards becoming a major player in the global fertiliser market. With the addition of this third line, Nigeria is prepared to significantly ramp up its export capacity, thereby enhancing its position as a key exporter of fertilisers to Africa and the world.
“Furthermore, the establishment of this fertiliser plant will not only address critical issues such as broader food security but also stimulate agricultural growth and create employment opportunities in Nigeria.”