Category: Business news Written by Atika Balal, Port Harcourt Hits: 1479
Plans have been concluded for Nigeria to house Africa’s largest fertilizer plant in Eleme, Rivers State, management of Indorama Eleme Petrochemicals Limited has said.
The project, which will cost the company about $1.20 billion is part of the company’s plan to make Nigeria the largest petrochemicals hub in Africa by 2017.
Managing Director of the company, Manish Mundra said this when the National Good Governance Tour team visited the company while on an inspection of ongoing projects in Rivers State.
Mundra said the plant, which is designed to produce 1.4 million tons of fertilizer annually, will begin production by the fourth quarter of 2015 with major a production of Urea and NPK amongst others.
He informed the team that the fertilizer plant will be handled by a Chinese company, Toyo Engineering limited, and will get its feed stock from natural gas.
He said the project will be funded through a loan from a consortium of Nigerian and foreign banks and it had already been over-emphasised by $480 million.
On the progress made by the company since privatization, Mundra said a steady growth and improvement in all its operations have been recorded since its take over.
Mundra said the company has contributed immensely to the growth of the Nigerian economy through the distribution of dividends to the shareholders of the company.
He said, “The company has distributed $229 million to the federal government, $115 million to the Rivers State Government, $38 million to six host communities and $13 million to staff of the company.
“The company has also remitted taxes to the tune of $168 million to the Federal Inland Revenue Service, Rivers State Inland Revenue Service and the Local Revenue Service.”
It is hoped that the cumulative direct job creation capacity of its investments will be about 6,000 people.
In his remarks, Information Minister Labaran Maku, commended the company’s contributions to the economy between 2007 and 2012, describing it as one of the best examples of Nigeria’s privatization programme.
“We should not be importing fertilizer into this country; we should also not be importing petrochemicals. So many businesses run by government which have been privatised are really not doing well but this company is the leading example of how public private partnership can work well if properly managed,” he said.
Maku said this will further encourage government and other stakeholders not to relent in the privatisation programme.