LAGOS, Nigeria (VOICE OF NAIJA)-The African Development Bank (AfDB) has finalised a $75m loan agreement with Nigeria’s Indorama Eleme Fertiliser and Chemicals Limited, as announced in a statement on Thursday.
The loan aims to increase Indorama’s fertiliser production capacity and facilitate the development of a port terminal for exports, fostering food production and security across regional and international markets while generating employment opportunities in Nigeria
Indorama’s expansion plans include the development of a third urea fertiliser production line and a new shipping terminal at its Port Harcourt facilities.
“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.”
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The announcement revealed that the upcoming production line and terminal, aimed at meeting the increasing global fertiliser demand, were projected to generate approximately 8,000 direct and indirect employment opportunities in Nigeria.
Acting Director of the Industrial and Trade Development Department at AfDB, Ousmane Fall commended the partnership, and stated that the partnership matched the bank’s goals to improve food security and industrialization in Africa, bringing significant development benefits to Nigeria.
The Group Director for Africa at Indorama Corporation, Manish Mundra, emphasised that building the fertiliser plant showcased Indorama’s strong dedication to fostering Nigeria’s industrial growth, economic diversification, and maximising its strategic geographic position.
“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.
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“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.
The AfDB’s loan strategy aims to boost private sector investment and spur growth in the real sector. The $75m loan is part of a larger $1.25bn facility organised by the IFC.
This financing package comprises a $215.5m loan from the IFC’s account, a $94.5m loan via the managed co-lending portfolio program, and $940m in parallel loans sourced from other development finance institutions and commercial banks.