IFC, others support Indorama with $1.25bn to boost fertiliser production

The International Finance Corporation (IFC) in collaboration with partners has supported Indorama Eleme Fertiliser and Chemicals Limited with a $1.25 billion financing package to boost local fertiliser production.

This investment will allow Indorama to ramp up its fertiliser production and develop a port terminal for exports, supporting food security across regional and international markets, while fostering job creation in Africa’s most populous nation.

“We are grateful to our financial partners for their unwavering support and confidence. IFC has been a key partner for Indorama in Nigeria for almost two decades,” said Amit Lohia, group vice chairman, Indorama Corporation in a statement.

According to Lohia, the financing demonstrates the strong collaboration and alignment of interests between the public and private sector to drive sustainable development while creating value for stakeholders.

“Indorama remains dedicated to playing a vital role in supporting global food security by ensuring consistent supply of high-quality fertilisers in Africa, and beyond while contributing to Nigeria’s broader economic objectives,” he noted.

Other lenders contributing to the financing include the African Development Bank, Bangkok Bank, British International Investment, Citibank, Deutsche Investitions-und Entwicklungsgesellschaft (DEG), DZ Bank, and Emerging Africa Infrastructure Fund (EAIF).

Others are Rand Merchant Bank, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Export-Import Bank of India (India Exim Bank), Export-Import Bank of Korea (KEXIM), the Standard Bank Group, Standard Chartered Bank, and the United States International Development Finance Corporation (DFC).

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As part of the project, Indorama will implement a greenhouse gas (GHG) emissions strategy to reduce emissions at its petrochemical complex by 32 percent by 2026, including significantly reducing gas flaring and other improvements.

This strategy aligns with Nigeria’s pledge to eliminate routine gas flaring by 2030 under the World Bank-led Global Gas Flaring Reduction Partnership.

Indorama’s two operational urea fertiliser lines serve Nigeria’s domestic market, supporting the country’s agricultural sector, which accounts for a quarter of its GDP and employs about a third of its labour force.

The new production line and terminal, which will help meet the growing global demand for fertiliser, are expected to create up to 8,000 direct and indirect jobs.

Manish Mundra, group director for Africa, Indorama Corporation, said the establishment of the fertiliser plant underscores the company’s commitment to Nigeria’s industrial growth, economic diversification and leveraging its strategic geographic location.

According to him, the landmark financing represents a pivotal moment in Nigeria’s journey towards becoming a major player in the global fertiliser market.

“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.”

Also, the establishment of this fertiliser plant will not only address critical issues such as broader food security but will also stimulate agricultural growth and create employment opportunities in Nigeria,” Mundra stated.

Sérgio Pimenta, IFC’s vice president for Africa, remarked that reliable access to high-quality fertiliser is essential for food production and food security around the world.

He noted that IFC’s investment in Indorama, along with African, Asian, European, and American partners, signals a joint commitment to support the agriculture sector, Nigeria’s economy, and the expansion of Indorama, which is an important supplier in the global food chain.

The investment in Indorama Eleme Fertiliser and Chemicals Limited is part of IFC’s strategy to promote diversified, inclusive growth and job creation in Nigeria, where IFC supports the manufacturing, agribusiness, healthcare, infrastructure, technology, and financial services sectors.

In his remarks, 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,” he added.