Following a strategy to support investment in private sector development to promote the growth of the real sector, the African Development Bank, AfDB, has announced 75 million dollar loan Memorandum of Understanding agreement with Nigerias Indorama Eleme Fertilizer and Chemicals Limited which will enable the company to increase its fertilizer production and develop a port terminal for exports.
According to a statement on its website, the bank said that the loan would help in supporting food production and food security across regional and international markets while fostering job creation in Nigeria. The expansion would include the development of a third urea fertilizer production line and a new shipping terminal at Indoramas facilities in Port Harcourt.
The new production line is expected to have an annual capacity of 1.4 million metric tons of urea, one of the most widely used fertilizer worldwide.
Indoramas two operational urea fertilizer lines serve Nigerias domestic market.
It supports the countrys agricultural sector, which accounts for a quarter of its Gross Domestic Product (GDP) and employs about a third of its labour force.
The new production line and terminal, which will help meet growing global demand for fertilizer, is expected to create up to 8,000 direct and indirect jobs in Nigeria, the statement said.
Ousmane Fall, Acting Director of Industrial and Trade Development Department, AfDB commended the partnership, noting that the bank was proud of its continued partnership with Indorama, the IFC, and other lenders on this critical project.
Fall said the partnership aligned with the banks strategic priorities to Feed and industrialise Africa, while generating significant development outcomes in Nigeria.
Manish Mundra, Group Director for Africa, Indorama Corporation earlier said the establishment of the fertilizer plant underscored Indoramas unwavering commitment to Nigerias industrial growth, economic diversification, and leveraging its strategic geographic location.
This landmark financing represents a pivotal moment in Nigerias journey towards becoming a major player in the global fertilizer market.
With this third line, Nigeria is prepared to significantly ramp up its export capacity, thereby, enhancing its position as a key exporter of fertilizer to Africa and the world.
Furthermore, the establishment of this fertilizer plant will not only address critical issues such as broader food security but will also stimulate agricultural growth and create employment opportunities in Nigeria, he said.
