NSIA, OCP Group To Invest $1.4bn In Ammonia, Fertilizer Project

…Project Implementation Begins In Q3

The $1.4bn Multipurpose Industrial Platform Project which was signed between the Nigeria Sovereign Investment Authority and the OCP Group of Morocco is expected to commence in the third quarter of this year.

This followed the landmark agreements signed by the NSIA with OCP of Morocco, Akwa Ibom State, Nigerian National Petroluem Corporation, Gas Aggregation Company Nigeria, Nigerian Content Development Monitoring Board and FEPSAN.

The development of the $1.4bn plant would help to produce Ammonia and Diammonium Phosphate, under its Gas Industrialization Strategy.

The agreements further cement the joint resolve of President Muhammadu Buhari and King Mohamed VI of Morocco to develop a Multipurpose Industrial Platform project in Nigeria.

The project, which is of monumental significance in the quest for industrialization, food security and continental cooperation is a backward integration initiative that builds on the successes of the Presidential Fertilizer Initiative and other sovereign bilateral initiatives between Nigeria and Morocco.

The project is structured to commercialize Nigeria’s vast natural gas resources and satisfy Morocco’s demand for cost-competitive Ammonia.

The first phase of the MPI Project will produce 1.5 million tonnes per annum of Ammonia in two phases.

Up to 70 per cent of the Ammonia produced will be allocated for export to Morocco and the balance will be routed to the production of one million tonnes per annum of Di-ammonium Phosphate and NPK fertilizers to feed domestic demand.

In the first phase of the project, $1.4bn will be invested in building out the plant and its supporting infrastructure with a target operations-commencement date of 2025.

The project will be sited in Akwa Ibom State in a gas-rich location. Factors such as land availability and accessibility; gas adequacy; sufficiency of marine draft; and other environmental and social considerations informed the decision to site the plant in Akwa Ibom.

At completion, the integrated Ammonia and fertilizer plant will house – within its battery limits – the process plants for Ammonia and fertilizer production, administrative buildings, fertilizer bagging units, water purification units, storage for raw materials and finished goods, onsite power plant and other ancillary facilities.

The plant will have a dedicated jetty to facilitate seamless importation of raw materials from Morocco and other suppliers and export of excess Ammonia and fertilizer to Morocco and potentially other regional markets.

Speaking on the development, the Minister of Petroluem Resources and Head of the Nigerian delegation, Timipre Sylva, said that Buhari is is committed to the actualization of the project.

He said, “I assure you that President Muhammadu Buhari is very committed to actualization of this project. He has mandated the Ministry of Petroleum Resources and all its agencies, notably the NNPC, DPR, NCDMB and all other government agencies to give maximum support for this project.”

Welcoming the Nigerian contingent, the Chairman and CEO of OCP, Dr. Terrab said the agreements would strengthen the partnership between the NSIA and OCP Group and the different institutions in the gas industry in Nigeria.

He said, “The outcome of today’s agreements will translate to knowledge transfer and broader economic opportunities as we build out the industrial platform.

“The platform will leverage the best of Nigerian and Moroccan natural resources, namely the Nigerian gas and the Moroccan phosphate and create a new basis for stronger ties.”

In his comment, the Managing Director and Chief Executive of NSIA, Mr. Uche Orji said the project forms a key part of NSIA’s gas industrialisation strategy and will deepen intra-continental trade which is essential to Africa’s development and economic renaissance.

He said, “This landmark project, the MIP, will explore increased levels of synergy between NSIA and OCP and the partners to the transactions and ultimately ensure that Nigeria builds an industrial base that is sustainable and complimentary to mutual objectives of developing the agriculture sector in Nigeria”.

The changes to the PFI significantly reduces NSIA involvement and transfers the responsibilities to the blenders .

Speaking on the project, the Group Managing Director of the NNPC, Mele Kyari explained that the NNPC and all its subsidiaries are committed to the project.

He further added that “NNPC is committed to taking equity stakes in the joint venture company and will ensure sufficient gas is available for the project to succeed.”

In his remarks, the Governor of Akwa Ibom State Udom Emmanuel assured the parties that the State is committed to ensuring the PMI project is a resounding success.

He added, “Our state is receptive to investments and we are prepared to offer the necessary support to make the project a reality.

“With a site that is suitably located to enable operational logistics and an abundance of gas resources, all that is left is for the parties to accelerate the project development process.”

The Executive Secretary, Nigerian Content Development and Monitoring Board, Simi Wabote said, “We are committed to ensure that clear operational guidelines and constructive oversight is provided to support the project. The investment is a welcome development, and we look forward to the commencement of the project.”

ENDS