News in Brief:
– British International Investment pledged $65 million to support Indorama’s expansion in Nigeria, aiming to boost fertiliser production, enhance food security, and diversify Nigeria’s economy through exports and job creation.
– The project also includes an emissions reduction strategy, aligning with Nigeria’s sustainability goals.
The UK’s development finance institution, British International Investment (BII), has pledged $65 million to support the expansion of Indorama Eleme Fertilizer and Chemicals in Nigeria. This investment is part of a larger $1.25 billion financing package that aims to increase fertiliser production and establish a new port terminal for exports.
Indorama, Sub-Saharan Africa’s leading fertiliser producer, will leverage BII’s investment to construct a third fertiliser production line. This will significantly increase its annual urea output to 1.4 million metric tons. Urea is a widely used fertiliser crucial for global food production and food security.
Also, the new production facility, alongside a new port terminal under construction, will address the rising global demand for fertiliser. It will also elevate Nigeria’s export potential and reduce reliance on imports.
Diversifying Nigeria’s economy
BII’s involvement signifies its long-term commitment to strengthening agricultural value chains in Nigeria and fostering economic diversification. This aligns with Nigeria’s National Development Plan, which prioritises boosting global competitiveness and industrial development.
Meantime, the project is expected to generate up to 8,000 direct and indirect jobs, contributing to economic growth in Nigeria.
Effectively, Indorama has pledged to implement a greenhouse gas (GHG) emissions reduction strategy, aiming to cut emissions at its complex by 32% by 2026.
Furthermore, BII’s investment joins a consortium led by the International Finance Corporation (IFC) and includes participation from commercial banks, impact investors, and other development finance institutions.
