Indorama advances US$257M fertilizer expansion project in Nigeria
The project is expected to raise the facility’s annual urea capacity from about 4.2 million tonnes to 5.6 million tonnes, a 33% increase.
NIGERIA – Indorama Eleme Fertilizer & Chemicals Limited is advancing plans to expand its nitrogen fertilizer manufacturing capacity in Nigeria through the construction of a fourth production line at its Eleme industrial complex in Rivers State.
The project, valued at approximately US$256.6 million, is expected to strengthen domestic fertilizer supplies, increase export potential and reinforce Nigeria’s position as a major producer of nitrogen-based fertilizers in Africa.
The latest development came on November 4, 2026, when South Korean engineering and construction company Daewoo Engineering & Construction announced that it had received a contract award letter from Indorama for the construction of the new production line.
The contract is valued at 350 billion South Korean won, equivalent to approximately US$256.6 million.
The proposed facility will incorporate production units capable of manufacturing 2,300 tonnes of ammonia and 4,000 tonnes of granulated urea daily.
According to project documentation published by the African Development Bank (AfDB) on October 27, the expansion is expected to increase annual urea production capacity at the Eleme complex by approximately 33%, from 4.2 million tonnes to 5.6 million tonnes once operational.
The new line will complement the three existing production lines at the facility.
The expansion also includes supporting infrastructure to secure raw material supplies and improve product distribution.
A major component involves constructing an approximately 65km natural gas pipeline connecting the complex to Awara in Imo State.
Combined with an existing 11km pipeline linked to the Assa North-Ohaji South (ANOH) gas processing plant, the infrastructure will establish a supply network of approximately 76km to support the additional production capacity.
Indorama also plans to upgrade port infrastructure at Onne through its subsidiary MM FZE.
The proposed improvements include an additional urea storage warehouse, unloading and conveying equipment, and an extension of the quay to accommodate increased fertilizer volumes and facilitate exports.
Financing for the expansion and associated infrastructure forms part of a US$1.25 billion syndicated debt programme managed by the International Finance Corporation (IFC).
In a September 14 statement, Dutch development bank FMO indicated its intention to contribute US$150 million through long-term senior debt financing, subject to the financing process.
The investment comes amid strong growth in Nigeria’s nitrogen fertilizer industry.
According to the International Fertilizer Development Center (IFDC), domestic urea production increased from 1.44 million tonnes in 2020 to 4.18 million tonnes in 2024, nearly tripling over four years.
Once completed, Indorama’s expansion is expected to increase Nigeria’s fertilizer production capacity, support agricultural productivity and strengthen its competitiveness in international fertilizer markets.
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