The African Development Bank (AfDB) has injected a financial boost into Nigeria’s agricultural sector through a $75 million loan agreement with Indorama Eleme Fertilizer and Chemicals Limited, as announced on Thursday.
The loan aims to facilitate the expansion of Indorama’s fertilizer production capacity and the development of a new port terminal for exports, thereby enhancing food production, ensuring food security, and stimulating job creation in Nigeria.
Join our WhatsApp Channel“This partnership underscores our commitment to fostering agricultural growth and industrialization in Africa,” stated Ousmane Fall, Acting Director of the Industrial and Trade Development Department at AfDB, expressing pride in the collaboration with Indorama and other stakeholders.
The loan will facilitate the establishment of a third urea fertilizer production line and a new shipping terminal at Indorama’s facilities in Port Harcourt. This expansion is expected to increase annual urea production capacity by 1.4 million metric tons, catering to the growing global demand for fertilizers.
“We are proud to contribute to Nigeria’s industrial growth and economic diversification,” remarked Manish Mundra, Group Director for Africa at Indorama Corporation, emphasizing the pivotal role of the fertilizer plant in positioning Nigeria as a major exporter in the global market.
Mundra highlighted the multifaceted benefits of the project, including enhanced food security, agricultural growth, and job creation. The establishment of the fertilizer plant aligns with Nigeria’s aspirations to play a significant role in global fertilizer trade while addressing critical issues such as broader food security.
The AfDB’s loan forms part of a larger financing package totaling $1.25 billion, arranged by the International Finance Corporation (IFC). This package includes loans from various institutions such as Bangkok Bank, British International Investment, Citibank, and Rand Merchant Bank, among others.
The loan agreement reflects AfDB’s strategy to promote private sector development and bolster investment in the real sector, driving economic growth and development in Nigeria and across Africa.
In summary, the AfDB’s partnership with Indorama signifies a milestone in Nigeria’s journey towards industrial growth, agricultural development, and global market competitiveness in the fertilizer industry.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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