The African Development Bank sign US$75 million loan agreement with Nigeria’s Indorama Eleme Fertilizer and Chemicals Limited
Published by Jack Roscoe,
Editorial Assistant
World Fertilizer,
The loan will enable Indorama to increase its fertilizer production and develop a port terminal for exports, supporting food production and food security across regional and international markets, while fostering job creation in Nigeria.
The expansion will include the development of a third urea fertilizer 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 t of urea, one of the most widely used fertilizers worldwide.
Indorama’s two operational urea fertilizer lines serve Nigeria’s domestic market, supporting the country’s agricultural sector, which accounts for a quarter of its GDP and employs about a third of its labor force. The new production line and terminal, which will help meet growing global demand for fertilizer, are expected to create up to 8000 direct and indirect jobs in Nigeria.
“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.
Speaking on the development, Manish Mundra, Group Director for Africa, Indorama Corporation said, “The establishment of this fertilizer 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 fertilizer 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 fertilizers 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.”
The African Development Bank’s loan follows a strategy to support investment in private sector development to promote the growth of the real sector.
Read the article online at: https://www.worldfertilizer.com/special-reports/02042024/the-african-development-bank-sign-us75-million-loan-agreement-with-nigerias-indorama-eleme-fertilizer-and-chemicals-limited/
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