The African Development Bank (AfDB) has inked a $75 million loan agreement with Nigeria’s Indorama Eleme Fertiliser and Chemicals Limited to enhance production capacity and stimulate economic growth in Nigeria.
The agreement, announced on Thursday via the bank’s official website, aims to bolster fertiliser production and facilitate the development of a port terminal for exports.
The loan is set to empower Indorama to expand its operations, thereby supporting food production, ensuring food security across regional and international markets, and fostering job creation in Nigeria.
The expansion plans include the construction of a third urea fertiliser production line and the establishment of a new shipping terminal at Indorama’s facilities in Port Harcourt.
Expected to have an annual capacity of 1.4 million metric tons of urea, the new production line aligns with Nigeria’s agricultural sector objectives, accounting for a significant portion of the country’s GDP and employment rate.
Ousmane Fall, Acting Director of the Industrial and Trade Development Department at AfDB, praised the partnership, emphasizing its strategic alignment with the bank’s goals to promote industrialization and agricultural development in Africa.
Manish Mundra, Group Director for Africa at Indorama Corporation, highlighted the significance of the fertiliser plant establishment in driving Nigeria’s industrial growth and economic diversification, ultimately positioning the country as a major player in the global fertiliser market.
The $75 million loan is part of a larger $1.25 billion financing package arranged by the International Finance Corporation (IFC), involving contributions from various institutions such as AfDB, Bangkok Bank, British International Investment, Citibank, and others.
