To enhance Food Security in Nigeria, British International Investment (BII), the UK Development Finance Institution (DFI), and impact Investors have announced a $65 million investment to aid Indorama Eleme Fertiliser and Chemicals’ growth initiatives. As part of the $1.25 billion investment commitment, it will enable Indorama, the leading fertiliser producer in Africa, to expand its fertiliser Manufacturing capacity and construct a new port terminal to support exports. This will enhance food production and food Security globally. BII is joining forces with IFC, commercial banks, impact investors and other DFIs in a consortium to invest in Indorama.
This marks BII’s fourth investment in Indorama since 2013, demonstrating their ongoing dedication to improving value chains and expanding Export opportunities in Nigeria’s agricultural industry. Indorama is expanding its urea fertiliser production in Nigeria to meet the needs of its agricultural industry. This new investment will allow Indorama to increase its annual capacity to 1.4 million metric tons of urea, a key component in worldwide fertilisers. Nigeria’s agricultural sector, which contributes notable parts of its GDP and employs many citizens, will benefit from this expansion.
Nigeria aims to improve its export and position as a fertiliser leader.
The Nigerian Economy has been dependent on oil and gas sector revenue, leaving it exposed to external disruptions and fluctuations in commodity prices. BII is committed to enhancing Nigeria’s Economic Diversification and advancing the National Development Plan by supporting Indorama’s growth as it seeks to improve Nigeria’s global competitiveness and further develop its industrialisation foundation. Indorama is expanding its operations in Port Harcourt, Nigeria, by constructing a new shipping terminal to complement its upcoming production facility. This expansion aims to address the increasing global need for fertiliser while generating employment opportunities, with up to 8,000 direct and indirect jobs expected to be created.
Also, the Group Director for Africa at Indorama Corporation, Manish Mundra, expressed the company’s dedication to Nigeria’s industrial development by setting up a fertiliser plant. This milestone financing marks a step for Nigeria in establishing itself as a key player in the international fertiliser market. By introducing this, Nigeria is ready to increase its export ability and solidify its role as a major supplier of fertilisers to Africa and beyond. IFC’s Regional Vice President for Africa, Sérgio Pimenta, emphasised the important role of quality fertiliser in global food production and security. The collaboration between IFC, Indorama, and partners from Africa, Asia, Europe, and America demonstrates a united effort to improve the agricultural industry and Nigeria’s economy and promote Indorama’s growth as a key player in the international food supply chain.
Farmers access commodities with the lowest prices in Nigeria.
Benson Adenuga, the Head of Office and Coverage Director for Nigeria at British International Investment, expressed his excitement about collaborating with IFC, other impact investors, and the development finance community on the initiative. Indorama’s project includes plans to cut Greenhouse gas (GHG) Emissions by 32 percent at its petrochemical complex by 2026. This will involve reducing Gas Flaring and making other enhancements, in line with Nigeria’s commitment to end regular gas flaring by 2030 as part of the Global Gas Flaring Reduction Partnership led by the World Bank. Two years ago, Indorama revealed intentions to inject a further $3 billion into its growth strategy to establish Nigeria as the leading petrochemical centre in Africa by 2026.
Mr. Manish Mundra, who is also the Managing Director of Indorama-Nigeria, expressed the company’s commitment to the Presidential Fertilizer Initiative by consistently providing urea on time. He emphasised this during a visit to the petrochemicals and fertiliser plants with Prof. Ibrahim Gambari, the then Chief of Staff to former President Muhammadu Buhari, and Dr. Zainab Shamsuna Ahmed, the former Minister of Finance, Budget, and National Planning. He observed that even with the rising cost of fertiliser globally, Indorama was committed to providing Nigerian farmers with the lowest prices for the essential commodity.
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Moreover, Gambari and Ahmed appreciated Indorama-Nigeria’s impact on the Presidential Fertiliser Initiative (PFI) over the last five years. According to Gambari, Indorama Fertiliser Limited has played a key role in the federal government’s agricultural advancement. The company operates two state-of-the-art fertiliser facilities in Port Harcourt, Rivers State, producing three million metric tons of urea annually. He mentioned how impressed they were by Indorama’s substantial investments totalling $3.5 billion in various sectors, such as petrochemicals, fertilisers, gas pipelines, port development, and related services.