The Board of Directors of the United States’ Overseas Private Investment Corporation (OPIC) has approved a $250 million loan to fund a nitrogen fertilizer facility in Nigeria.
According to allAfrica, the State Department’s Spokesperson, Victoria Nuland, made the disclosure in Washington DC.
“I want to, before we start, just commend the OPIC Board of Directors for approving two major projects in Africa totalling some $400 million. These are actually both pretty cool. This first one is called Greenpark and it includes a $250 million loan to fund a nitrogen fertilizer facility in Nigeria,” she said.
In the heat of global food crisis and rising food insecurity, international organizations such as the World Bank, have been looking to Africa and aiding the continent to escalate food production has its untapped arable land and people hold the key to food security.
It is believed self-sufficient fertilizer production in Nigeria will reduce the cost price of the product and increase availability, therefore increasing farming productivity in the region.
The country’s richest man, Aliko Dangote, in November, also announced plans to build a 300 billion naira ($1.9 billion) fertilizer plant in Nigeria, expected to be the biggest in Africa.
The Overseas Private Investment Corporation (OPIC) is the U.S. government’s development finance institution. It mobilizes private capital to help solve critical development challenges and, in doing so, advances U.S. foreign policy. OPIC helps U.S. businesses gain presence in emerging markets, catalyzing revenues, jobs and growth opportunities both at home and abroad.