Nigeria has joined with OCP group in Morocco to endorse protocols that progresses the Fertilizer production establishment in Akwa Ibom.
We gave gas supply assurances and NNPC will take equity in the venture. Local fertilizer production will get boost!
The pact was signed by the Nigerian delegation led by the Minister of State for Petroleum, Timipre Sylva and officials of Nigeria Sovereign Investment Authority (NSIA).
This was disclosed in a statement issued by NSIA and seen by Truetalknews on Tuesday.
See Proof of the meeting below;
We joined HMSPR Timipre Sylva, OCP Morocco, PFI and the NSIA in Marrakech to endorse protocols that progresses the Amonia plant establishment in Akwa Ibom. We gave gas supply assurances and NNPC will take equity in the venture. Local fertilizer production will get boost! pic.twitter.com/krmwzQ7lji
— Mele Kyari (@MKKyari) March 2, 2021
However, this is expected to utilize Nigerian gas and Moroccan phosphate to produce 750,000 tons of ammonia and one million tons of phosphate fertilizers annually by 2025.
To achieve the 750,000 tons target, a number of agreements were signed between OCP Africa, the Fertilizer Producers and Suppliers Association of Nigeria, and the NSIA in order to commit to the second phase of the Nigerian Presidential Fertilizer Initiative.
Similarly, a Shareholders’ Agreement was also signed between OCP Africa and the NSIA for the creation of the Joint Venture Company. This agreement would oversee the development of a versatile industrial platform that will produce ammonia and fertilizers in Nigeria.
It stated, “a Memorandum of Understanding between OCP Africa, the Nigerian National Petroleum Corporation, and NSIA was sealed. The objective of this pact is to evaluate the opportunity of an equity investment by the NNPC in the JVC and for its support on gas.”
What you should know
The business visit is a follow up to the industrial project which was officially launched in June 2018 following the success of the first phase of the Presidential Fertilizer Initiative supported by OCP.
Through these agreements, the OCP Group has confirmed its commitment to the development of sustainable and inclusive agriculture in Nigeria.
The project was first announced during the official visit to Morocco of President Muhammadu Buhari and it is aimed at developing a versatile industrial platform in Nigeria.
Recall that in 2016, OCP Group first partnered with the Fertilizer Producers and Suppliers Association of Nigeria under the Presidential Fertilizer Initiative, supported by the Nigerian Sovereign Investment Authority.
This collaboration stretched across the entire agricultural value chain, from the introduction of customized fertilizers adapted to local soils and crops to improving the availability of fertilizers in the local market at competitive prices.
The partnership also included farmer support initiatives, supply chain development projects along with the strengthening of a close distribution system.
These joint efforts have led to the renovation of 13 blending units and packaging for fertilizers and installation by private operators of more than 14 new factories.