Multi-Purpose Industrial Platform Project
- The Sponsors seek to develop an integrated Ammonia and fertilizer production plant that will benefit both Nigeria and the Kingdom of Morocco by commercializing Nigeria’s vast natural gas resources and satisfying Morocco’s demand for cost-competitive Ammonia.
- The Project will be developed to produce 1.5 million tons per annum (“MTPA”) of Ammonia in two phases. 60-70% of the Ammonia produced will be allocated for export to Morocco, while the excess will be routed for the production of Di-Ammonium Phosphate and NPK fertilizers to feed domestic demand. The Project will require about 150 million standard cubic feet (“MMscf”) of gas for both phases.
- The Project will be sited in Ikot Abasi, in Akwa Ibom State (AIS) on a 250 Hectare (“Ha”) parcel of land, with a projected operations commencement date of Q2 2025.
A. Import Substitution
- Nigeria currently imports two (Potash & DAP) of the four main raw material constituents required for the production of NPK fertilizer, with DAP imported mostly from Morocco.
Producing Ammonia and DAP locally will save scarce foreign exchange resources and build local chemicals production capacity.
B. Fertilizer Sufficiency
- Nigeria’s per capita consumption of fertilizer is one of the lowest in the world.
Fertilizer inadequacy, high costs, and lack of access inhibit the use of fertilizer, which leads to low yield and low export potential of the end-product.
The project will increase Nigeria’s production capacity to satisfy the local demand for high-grade NPK fertilizer.
C. Job Creation
- The plant will create about 500 direct jobs and 20,000 indirect jobs through the construction and production phase.
D. Trade Realignment and Economic Diversification
- Nigeria currently imports a significant proportion of its Fertilizer inputs from Morocco.
By combining the competitive advantages of Nigeria’s natural gas reserves and Morocco’s phosphate rock reserves, the project also helps realign the balance trade between these two nations while alleviating pressure on Nigeria’s forex reserves and giving Morocco unmatched access to cost-competitive ammonia.
E. Gas Sector Development
- A project-financed, greenfield, gas-based industrial project of this size, in partnership with OCP, will be a major milestone for Nigeria. The Project has strong government support.