NSIA secures $1.4bn fertilizer plant deal
The Nigeria Sovereign Investment Authority (NSIA) on behalf of the federal government has signed landmark agreements with OCP of Morocco for development of $1.4 billion plant to produce Ammonia and Diammonium Phosphate, under its Gas Industrialization Strategy.
Parties to the agreement included Akwa Ibom, Nigerian National Petroleum Corporation (NNPC), Gas Aggregation Company Nigeria (GACN), Nigerian Content Development and Monitoring Board (NCDMB) and Fertilizer Suppliers Association of Nigeria (FEPSAN).
The agreement further cements the joint resolve of President Muhammadu Buhari and His Majesty, King Mohamed VI, King of Morocco to develop a Multipurpose Industrial Platform Project (MIPP) in Nigeria, a project of monumental significance in the quest for industrialization, food security and continental cooperation.
NSIA in a statement stated that the MIPP is a backward integration initiative, which builds on the successes of the Presidential Fertilizer Initiative (PFI) 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,” NSIA explained in a statement.
Speaking on the development, Minister of State for Petroleum and head of the Nigerian delegation, Chief Timipre Sylva said “I assure you that President Muhammadu is very committed to actualisation of this project.
“He has mandated the Ministry of Petroleum Resources and all its agencies, notably the NNPC, DPR, NCDMB and allot her government agencies to give maximum support for this project.”
Welcoming the Nigerian contingent, the Chairman and CEO of OCP, Dr. Terrab said “Ultimately, these agreements will strengthen the partnership between the NSIA and OCP Group and the different institutions in the gas industry in Nigeria.
“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, MD & CEO of NSIA, Mr. Uche Orji said “this 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.
“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.”
Speaking on the project, GMD NNPC, Mal. Mele Kyari remarked 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, Akwa – Ibom state Governor Udom Emmanuel assured the parties that “Akwa – Ibom is committed to ensuring the PMI project is a resounding success. 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, NCDMB, Engr. 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.”
Speaking on the development, Managing Director and Chief Executive Officer, GACN, Mr. Ogunleye said, “We are looking toward the project. All the support required for its success within our remit will be provided. We expect that this will encourage more investment of this nature in Nigeria.”
Making his comments, Chairman FEPSAN, Mr. Thomas Etuh said “Nigeria possesses an enviable reserve of natural gas while Morocco is a leader in fertilizer production.
“These comparative advantages make for a partnership between our two countries that is mutually beneficial and scalable.
“FEPSAN was a party to the first structure of the Presidential Fertiliser Initiative (PFI).
“We are working now to ensure that the results of the first phase are improved upon and broadened in the new structure.”
NSIA, the OCP of Morocco and key operators in the oil and gas value chain executed five crucial agreements today at the Mohamed VI Polytechnic University (UM6P) in Benguerir, Morocco.
The agreements are designed to create a clear path for the second phase of the Presidential Fertiliser Initiate as well as the creation and operationalization of a Multipurpose Industrial Platform (MPI) in Nigeria.
NSIA stated that five agreement were executed are: “A Memorandum of Understanding (MOU) between NSIA, OCP Africa and the FEPSAN to commit to the second phase of the Nigerian Presidential Fertilizer Initiative (PFI II).
“A Shareholders Agreement (SHA) between the NSIA and OCP Africa for the creation of the Joint Venture Company (JVC) which will oversee the development of an industrial platform that will produce ammonia and fertilizers in Nigeria.
“A MOU between NSIA, OCP Africa and the Akwa Ibom State in Nigeria on land acquisition, administrative facilitation, and common agricultural development projects in the Akwa Ibom State.
“A MOU between NSIA, OCP Africa, and the NNPC, to evaluate the opportunity of an equity investment by the NNPC in the JVC and for its support on gas.
“A Framework Agreement between NSIA, OCP Africa, Mobil Producing Nigeria (MPN), the NNPC and the GACN on gas supply for the MPI.”
