Following the economical crisis facing the society, the African Development Bank has agreed to signed a $75m loan with Nigeria’s Indorama Eleme Fertiliser and Chemicals Limited.
On Thursday, the bank disclosed this in a report issued on its website.
AFDB said the loan will enable Indorama to increase its fertiliser production and develop a port terminal for export, and international markets while fostering job creation in Nigeria.
It stressed that the expansion would include the development of a third urea fertiliser production line and a new shipping terminal at Indorama’s facilities in Port Harcourt.
“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.”
It revealed that it would help meet the new production line and growing global demand for fertiliser, were expected to create up to 8,000 direct and indirect jobs in Nigeria.
Ousmane Fall, the Acting Director of the Industrial and Trade Development Department, AfDB, said while commending the partnership.
Fall said the bank was proud of its continued partnership with Indorama, the IFC and other lenders on the project.
Also speaking, Manish Mundra, the Group Director for Africa, Indorama Corporation, noted that the establishment of the fertiliser plant underscored Indorama’s unwavering commitment to Nigeria’s industrial growth, economic diversification and leveraging its strategic geographic location.
“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.
“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 of $75m follows a strategy and support investment in private sector development to improve the growth of the real sector.
The $75m loan is part of a $1.25bn facility arranged by IFC.
The financing package includes a $215.5m loan from IFC’s account, a $94.5m loan through the managed co-lending portfolio programme and $940m in parallel loans mobilised from other development finance institutions and commercial banks.
Some of the banks where the loans where obtain include the AfDB, Bangkok Bank, British International Investment, Citibank, DZ Bank, Emerging Africa Infrastructure Fund, Rand Merchant Bank, etc.
