The African Development Bank (AfDB) has finalized a $75 million loan agreement with Nigeria’s Indorama Eleme Fertilizer and Chemicals Limited.
This is according to a statement issued on the bank’s website late Thursday, March 28, 2024.
The loan aims to facilitate Indorama’s expansion of fertilizer production and the development of a port terminal for exports, with the ultimate goal of enhancing food production, ensuring food security in regional and international markets, and promoting job creation in Nigeria.
Part of the expansion project includes the construction of a third urea fertilizer production line and a new shipping terminal at Indorama’s facilities in Port Harcourt, with an expected annual capacity of 1.4 million metric tons of urea.
The expansion project is anticipated to generate up to 8,000 direct and indirect jobs in Nigeria, contributing significantly to the country’s agricultural sector, which accounts for a quarter of its GDP and employs about a third of its labor force.
Ousmane Fall, Acting Director of Industrial and Trade Development Department at AfDB, commended the partnership with Indorama, emphasizing its alignment with the bank’s strategic priorities to promote industrialization and food security in Africa.
Manish Mundra, Group Director for Africa at Indorama Corporation, underscored the company’s commitment to Nigeria’s industrial growth and economic diversification, highlighting the plant’s role in enhancing Nigeria’s position as a major exporter of fertilizer to Africa and the world.
The AfDB’s loan forms part of a $1.25 billion facility arranged by the International Finance Corporation (IFC), comprising loans from various development finance institutions and commercial banks.
This financing package reflects a strategy to support private sector development and promote growth in the real sector.
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