The Nigerian Sovereign Investment Authority (NSIA) has signed a deal with OCP of Morocco, for the development of a $1.4billion plant for the production of Ammonia and Diammonium Phosphate under its Gas Industrialisation Strategy.
According to the NSIA, the project is a backward integration initiative set to actualize the President Buhari Fertilizer sufficiency initiative (PFI) and other sovereign bilateral initiatives between Nigeria and morocco.
According to the agency, the project was set to commercialize Nigerian vast natural gas resources and at the same time accomplish Morocco’s demand for a cost-competitive Ammonia.
Parties to the memorandum of understanding (MOU) are the Nigerian National Petroleum Corporation (NNPC), Nigerian Content Development and Monitoring Board (NCDMB), Gas Aggregation Company Nigeria limited (GACN), Akwa Ibom State Government, Fertilizer Producers and Suppliers Association of Nigeria (FEPSAN) and mobile Producing Nigeria (MPN).
The MOU which was signed at Beguerir, Morocco was for the Nigerian government to commit to the second phase of the Nigerian Presidential Fertilizer Initiative (PFI II).
The deal; also included shareholders ‘Agreement (SHA) between the NSIA and OCP Africa for the creation of a joint venture Company that would supervise the development of an industrial platform that would produce Ammonia and Fertilizer in Nigeria and also oversees Akwa Ibom state in Nigeria on Land acquisition, administrative facilitation and common agricultural development project in the state.
During the meeting, the NSIA MD, Mr. Uche Orji disclosed that the deal forms an integral part of the agency’s gas industrialization strategy and would keep intra-continental trade which is necessary to African development and its economic revamping.
In his statement, “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 complementary to mutual objectives of developing the agriculture sector in Nigeria”.