BII Invests $65M to Expand Indorama’s Agrochemical Production in Nigeria

British International Investment (BII) joined an IFC-led consortium — including commercial banks, impact investors and other #DFI — to invest USD 65 million in support of the expansion of Indorama Eleme Fertilizer and Chemical plant in Nigeria. In complement to the fertilizer plant, infrastructure at Port Harcourt will be enhanced.

The investment forms part of a USD 1.25 billion financing package which will reinforce Indorama’s position as the largest fertilizer producer in Sub-Saharan Africa. Through the judicious application of fertilizer, the project will contribute to increase food production and enhance #FoodSecurity.

“We are delighted to partner with IFC, other impact investors, and the development finance community on this project which will boost fertilizer 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.”

BII Nigeria Heead Benson Adenuga
Indorama Petrochemical Complex Control Room

In particular, the investment will go towards implementing the 3rd production line which will bring up output to 1.4 million tonnes of urea annually. Part of the investment will go towards upgrading the shipping terminal at Port Harcourt to facilitate the export of fertilizer.

The expanded fertilizer plant is expected to reduce Nigeria’s dependence on imports of agricultural inputs and produce. It will also improve Nigeria’s position in terms of its foreign exchange reserves. As per the National Development Plan (#NDP) of Nigeria, the agrochemical plant represents a step towards the diversification of the Nigerian economy.

Currently, the agricultural sector accounts for 25% of the Nigeria’s GDP and employs one-third of its workforce. The expansion project is expected to create up to 8,000 direct and indirect jobs.

“The establishment of this fertilizer 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 fertilizer 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 fertilizers to Africa and the world.”

Indorama Group MD Manisha Mundra
Indorama Annual Conference 2023

In support of the fight against #ClimateChange, Indorama has committed to implement a Greenhouse Gas (GHG) Reduction Strategy and aims to reduce #GHG emissions at its petrochemical complex by at least 32% by 2026. It is worth noting that Indorama’s green initiative is in line with and will be tracked under the World Bank Global Gas Flaring and Methane Reduction Partnership (#GFMR).