The Nigerian National Petroleum Corporation (NNPC) is to acquire a 20 per cent stake in the Nagarjuna Fertiliser Project.
In a statement issued on Monday, NNPC’s spokesman, Ndu Ughamadu disclosed that the corporation would take 20 per cent equity in the fertiliser company in Nigeria and provide the gas feedstock.
The statement also indicated that the project was designed to produce 2.8 metric tonnes per annum (mtpa) of urea and 0.22 mtpa of ammonia.
According to the statement, the Group Managing Director (GMD) of NNPC, Maikanti Baru, charged members of the Joint Management Committee of the project to work hard to achieve early Final Investment Decision (FID) for eventual take-off of the project.
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Baru, while inaugurating the project committee, expressed optimism that the President Muhammadu Buhari led administration was keenly interested in diversifying the economy by growing the agricultural sector, hence the interest to invest in the fertiliser company.
Baru also stated that the early take-off of the Nagarjuna Fertiliser Project would be a boost to that aspiration.
He said: ‘‘It is my expectation that the negotiations with the financiers and other prospective investors will be concluded in order to meet the FID target of March 2019.
‘‘With the composition of the committee, I believe the target FID date will be achieved. The key message to the committee therefore is to ensure that we conclude the pre-FID activities in good time to achieve the FID target.”
The GMD further disclosed that the project was in tandem with the objectives of the Federal Government’s 7-Big Wins and the corporation’s 12-Business Focus Areas to aggressively commercialise the nation’s enormous gas resources through gas-based industrialisation.
