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The African Development Bank has signed a $75 million loan agreement with Nigeria’s Indorama Eleme Fertiliser and Chemicals Limited.
The bank announced this in a statement issued on its website on Thursday, stating that the loan will enable Indorama to increase its fertiliser production and develop a port terminal for exports.
AFDB said that the loan would support food production and food security across regional and international markets while fostering job creation in Nigeria.
It added that the expansion would include the 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 1.4 million metric tons of urea, one of the most widely used fertilisers worldwide.
“It supports the country’s agricultural sector, which accounts for a quarter of its gross domestic product and employs about a third of its labour force.”
It disclosed that the new production line and terminal, which would help meet the growing global demand for fertiliser, were expected to create up to 8,000 direct and indirect jobs in Nigeria.
The Acting Director of the Industrial and Trade Development Department, AfDB, Ousmane Fall, commended the partnership and said the bank was proud of its continued partnership with Indorama, the IFC and other lenders on the project.
Fall declared that the partnership aligned with the bank’s strategic priorities to feed and industrialise Africa while generating significant development outcomes in Nigeria.
The Group Director for Africa, Indorama Corporation, Manish Mundra, on his part, stated that the establishment of the fertiliser plant underscored 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 this third line, Nigeria is prepared to significantly ramp up its export capacity, thereby, enhancing its position as a key exporter of fertiliser to Africa and the world.
“Furthermore, the establishment of this fertiliser 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 explained.
