ADB To Release $75m Loan For Indorama To Upscale Fertiliser Production, Export

The African Development Bank has finalized a $75 million loan agreement with Nigeria’s Indorama Eleme Fertilizer and Chemicals Limited. This funding will facilitate the expansion of Indorama’s fertilizer production capacity and the establishment of a port terminal for exports. These initiatives aim to bolster food production and security within regional and international markets while simultaneously fostering job opportunities in Nigeria.
The expansion project encompasses the construction of a third urea fertilizer production line and a new shipping terminal at Indorama’s Port Harcourt facilities. With an anticipated annual capacity of 1.4 million metric tons, the new production line will contribute to meeting the global demand for urea, a vital fertilizer globally.
Currently, Indorama’s two operational urea fertilizer lines cater to Nigeria’s domestic market, supporting the nation’s agricultural sector, which constitutes a quarter of its GDP and employs about a third of its workforce. The expansion project is projected to generate up to 8,000 direct and indirect employment opportunities in Nigeria.
Ousmane Fall, Acting Director of the Industrial and Trade Development Department at the African Development Bank, expressed pride in the ongoing partnership with Indorama, the IFC, and other lenders, underscoring its alignment with the Bank’s strategic objectives to enhance food security and industrialization in Africa while delivering significant developmental impacts in Nigeria. Source: Daily Trust

OUR REVIEW
The African Development Bank’s $75 million loan agreement with Indorama Eleme Fertilizer and Chemicals Limited marks a pivotal step in Nigeria’s agri-food sector. By expanding fertilizer production and establishing a port terminal, the project enhances food security locally and globally while creating employment opportunities. The addition of a third urea fertilizer production line, alongside the port terminal, boosts Indorama’s capacity to meet rising global urea demand. Currently serving Nigeria’s domestic market, Indorama’s expansion aligns with the nation’s agricultural sector, vital for economic growth and employment. Anticipated to generate 8,000 jobs, this initiative underscores the bank’s commitment to African industrialization and food security. Ousmane Fall’s pride in the partnership reflects its strategic importance in fostering agricultural growth and economic development in Nigeria and beyond.