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AfDB Partners with Indorama to Boost Fertilizer Production and Export Capacity in Nigeria

The African Development Bank (AfDB) has entered into a $75 million loan agreement with Indorama Eleme Fertiliser and Chemicals Limited, a leading Nigerian fertiliser manufacturer. The loan facility is aimed at enhancing Indorama’s fertilizer production capabilities and developing a dedicated port terminal to facilitate exports.

According to the AfDB, this investment will bolster food production and food security across regional and international markets while fostering job creation within Nigeria. The project entails the construction 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 fertilizers globally. This expansion will support Nigeria’s agricultural sector, which accounts for a quarter of the country’s gross domestic product and employs approximately one-third of its labour force.

The AfDB estimates that the new production line and terminal, designed to meet the growing global demand for fertiliser, will create up to 8,000 direct and indirect jobs in Nigeria.

Ousmane Fall, the Acting Director of the Industrial and Trade Development Department at the AfDB, commended the partnership with Indorama, the International Finance Corporation (IFC), and other lenders on the project. Fall stated that the collaboration aligns with the bank’s strategic priorities to promote agricultural development and industrialization in Africa while generating significant development outcomes in Nigeria.

Manish Mundra, the Group Director for Africa at Indorama Corporation, emphasised the company’s unwavering commitment to Nigeria’s industrial growth, economic diversification, and leveraging its strategic geographic location. Mundra expressed that the establishment of the fertiliser plant represents a pivotal moment in Nigeria’s journey towards becoming a major player in the global fertiliser market, enhancing its position as a key exporter of fertiliser to Africa and the world.

The $75 million AfDB loan is part of a broader $1.25 billion financing package arranged by the IFC. The financing package includes a $215.5 million loan from IFC’s account, a $94.5 million loan through the managed co-lending portfolio programme, and $940 million in parallel loans mobilised from other development finance institutions and commercial banks, such as Bangkok Bank, British International Investment, Citibank, DZ Bank, Emerging Africa Infrastructure Fund, and Rand Merchant Bank.

The AfDB’s loan aligns with its strategy to support investment in private sector development and promote the growth of the real sector in Africa.

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