Nigeria: British International Investment commits $65m to fertiliser producer
Nigeria: British International Investment commits $65m to fertiliser producer
BII has committed $65 million to support Indorama's expansion plans in Nigeria.
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British International Investment (BII), the UK’s development finance institution (DFI), has committed $65 million to support Indorama Eleme Fertilizer and Chemicals’ expansion plans in Nigeria. The investment forms part of a $1.25 billion financing package which will allow Indorama, the largest fertiliser producer in sub-Saharan Africa, to increase its fertiliser production and build a new port terminal for exports.
BII’s investment forms part of a consortium led by IFC and includes commercial banks, impact investors and other DFIs. This is BII’s fourth investment in Indorama since 2013.
Indorama’s two operational urea fertiliser lines currently serve Nigeria’s domestic market, supporting the country’s agricultural sector, which accounts for a quarter of its GDP and employs approximately a third of its labour force. This investment will finance the development of Indorama’s third nitrogenous urea fertiliser production line, which is expected to increase its annual capacity to 1.4 million metric tonnes of urea.
The new production facility will be complemented by a shipping terminal currently under construction at Indorama’s operations in Port Harcourt, Nigeria.
Manish Mundra, group director for Africa at Indorama Corporation said: “The establishment of this fertiliser plant underscores 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 the addition of Line 3, Nigeria is prepared to significantly ramp up its export capacity, thereby enhancing its position as a key exporter of fertilisers to Africa and the world.”
Sérgio Pimenta, IFC’s regional vice president for Africa said: “Reliable access to high quality fertiliser is essential for food production and food security around the world. IFC’s investment in Indorama, along with African, Asian, European, and American partners, signals our joint commitment to support the agriculture sector, Nigeria’s economy, and the expansion of Indorama, an important supplier in the global food chain.”
Benson Adenuga, head of office and coverage director for Nigeria at British International Investment said: “We are delighted to partner with IFC, other impact investors, and the development finance community on this project which will boost fertiliser production in Nigeria, support food security and create jobs. Our ongoing commitment to back Indorama’s expansion will also help to elevate Nigeria’s export potential and support the diversification of its economy.”
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