UK (commonwealth) _ As a result of commonwealth strategic partner, British International Investment’s commitment, Indorama will be able to build a new port terminal and a third fertilizer production line in Nigeria, increasing its ability to produce fertilizer and promoting global food production and food security. Additionally, it would lessen Nigeria’s need on imports and increase the country’s export potential.
The UK’s Development Finance Institution (DFI) and impact investor, British International Investment (BII), has pledged $65 million to help Indorama Eleme Fertilizer and Chemicals with its growth aspirations in Nigeria. As part of a $1.25 billion financing package, the investment would enable Indorama, the biggest fertilizer manufacturer in Sub-Saharan Africa, to boost global food supply and food security by building a new port facility and increasing fertilizer output.
A group headed by the IFC that also comprises commercial banks, impact investors, and other DFIs incorporates BII’s investment. With this investment, BII has made four in Indorama since 2013. This shows the DFI’s ongoing dedication to enhancing value chains in Nigeria’s agriculture industry and raising the nation’s export potential.
Nigeria’s domestic market is now served by Indorama’s two active urea fertilizer plants, which help the nation’s agriculture sector—which generates 25% of the nation’s GDP and employs around 33% of its labor force—by providing support. With this investment, Indorama will be able to build its third nitrogenous urea fertilizer manufacturing line, increasing its yearly capacity to 1.4 million metric tons of urea—one of the most popular fertilizers in the world.
Nigeria’s economy has historically been highly dependent on income from the oil and gas industry, which leaves it open to outside shocks and fluctuations in commodity prices. By aiding Indorama’s growth, BII hopes to hasten Nigeria’s economic diversification and advance the implementation of the National Development Plan, which lays out goals to increase Nigeria’s competitiveness internationally and fortify its solid industrialization roots.
At Indorama’s activities in Port Harcourt, Nigeria, a shipping port that is presently being built will complement the new production plant. Both are anticipated to generate up to 8,000 direct and indirect employment and aid in meeting the rising demand for fertilizer on a worldwide scale.
“The establishment of this fertilizer plant underscores Indorama’s unwavering commitment to Nigeria’s industrial growth, economic diversification, and leveraging its strategic geographic location,” stated Manish Mundra, Group Director for Africa at Indorama Corporation. This historic funding marks a turning point in Nigeria’s development as a significant force in the world fertilizer industry. Nigeria is ready to greatly increase its export capacity with the addition of Line 3, strengthening its position as a major fertilizer exporter to Africa and the rest of the globe.
Food production and nutrition depend on consistent availability to high-quality fertilizer, according to Sérgio Pimenta, Regional Vice President for Africa at the IFC. Having consistent availability to high-quality fertilizer is crucial for global food production and security. Together with our African, Asian, European, and American partners, IFC has invested in Indorama, demonstrating our shared commitment to bolstering Nigeria’s economy, the agriculture sector, and the growth of Indorama—a crucial supplier in the world food chain.
The development finance community, IFC, and other impact investors are excited to collaborate with British International Investment’s Benson Adenuga, Head of Office and Coverage Director for Nigeria, on this project that will increase fertilizer production in Nigeria, support food security, and generate employment. Our continued support for Indorama’s growth will also assist to improve Nigeria’s export potential and encourage economic diversification.
As part of the project, Indorama is going to dramatically reduce gas flaring and make other changes in order to cut emissions at its petrochemical complex by thirty-two percent by the year 2026. This plan is in line with Nigeria’s commitment made to the World Bank-led Global Gas Flaring Reduction Partnership to end regular gas flaring by 2030.
British International Investment is the oldest impact investor in the world and the UK’s development finance organization, having been founded in 1948. It has been investing for impact for more than 70 years, building solid alliances with thousands of aspirational companies to improve the social and economic conditions of the nations in which they do business.
At now, they collaborate with more than 1,000 companies in developing nations, and their combined assets amount to £7.5 billion. They collaborate with their investee partners to help them flourish and expand enterprises that have an impact.
