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A loan to support the fertilizer industry in Nigeria

Project

Agriculture and agri-food
Signature date
Location
Nigeria
Financing tool
Equity investment
Financing amount (Euro)
16847100
Financing details
USD 20m Equity Investment
Customer
ABRAAJ FERTILISER HOLDINGS B.V
Type of customer
Company
Country of headquarters
The Netherlands
Project number
PNG1055
Environmental and social ranking
B+
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This information is given at the time of signature, without prejudice to any developments in the operation/project.

The loan allocated by Proparco will allow IEFCL to build and operate the largest fertilizer plant in Nigeria, near Port Harcourt in the Niger Delta. This site is expected to produce 1.4 million tons of granular urea a year for the domestic and international markets and support 1,200 jobs over the next five years.

Client presentation

IEFCL is a company specialized in manufacturing and trading granular urea. It is located near Port Harcourt (Niger Delta, Nigeria) and targets West African and international markets. Proparco is an investor in IEFCL alongside Indorama Group, FMO and two investment funds.

Project description

IEFCL will build and operate the largest fertilizer plant in Nigeria, near Port Harcourt in the Niger Delta. Once it has been completed, the site will produce 1.4 million tons of granular urea a year for the domestic and international markets.

Project impact

The expected impacts of this project are as follows:

  • Some 1,200 jobs supported over the next five years, including the creation of over 400 direct jobs.
  • All IEFCL’s employees will benefit from a training program. In addition, 5,200 people should be employed during the construction phase.
  • An improvement in the supply of urea on the Nigerian market, in the context of a very tight market (about 600 kt of urea are imported, the local production capacity currently stands at a maximum of 150 kt). The plant’s production for the local market should supply over 40% of domestic consumers, with prices probably lower than current prices as the urea is produced locally.
  • Support for the growth of Nigeria’s agriculture sector. It is estimated that urea production for the local market will serve 36 million local smallholders who will be able to increase their yields. In addition, IEFCL will set up training programs to educate Nigerian farmers about the importance of a rational use of fertilizers.