British International Investment (BII) has pledged $65 million to support the expansion efforts of Indorama Eleme Fertilizer and Chemicals in Nigeria.
This financing agreement is a part of a larger $1.25 billion financial package designed to assist Indorama, Sub-Saharan Africa’s foremost fertilizer manufacturer, in augmenting its production capabilities and establishing a new port terminal for exporting purposes, thereby enhancing global food production and ensuring food security.
The investment is earmarked for the construction of Indorama’s third production line for nitrogenous urea fertilizer, aiming to boost its annual output to 1.4 million metric tons. Urea is among the most commonly utilized fertilizers globally.
A new shipping terminal, presently being built at Indorama’s site in Port Harcourt, Nigeria, will support the new production facility. Together, they are set to address the increasing worldwide need for fertilizer and are anticipated to generate as many as 8,000 direct and indirect employment opportunities.
Increase in Nigeria’s export capacity
Speaking on the deal, the Group Director for Africa, Indorama Corporation, Manish Mundra stated the introduction of Line 3 will help position Nigeria as a key player in the international fertiliser industry as it exports capabilities will significantly increase.
- He said, “This landmark financing represents a pivotal moment in Nigeria’s journey towards becoming a major player in the global fertilizer market. With the addition of Line 3, Nigeria is prepared to significantly ramp up its export capacity, thereby enhancing its position as a key exporter of fertilizers to Africa and the world.”
Emission reduction strategy
The financing agreement also mandates Indorama to implement a Greenhouse gas (Ghg) emission reduction target of 32% by 2030 and also reduce gas flaring at its sites. This strategy is in line with Nigeria’s commitment to the World Bank-led Global Gas Flaring Reduction Partnership, aiming to cease routine gas flaring by 2030.
