The Federal Government and the Kingdom of Morocco have signed five strategic Memoranda of Understanding (MoUs) to enable Nigeria commence the importation of Phosphate used in the production of fertilisers.
The Minister of State for Petroleum Resources, Chief Timipre Sylva said more private and public sector collaboration will be encouraged as Nigeria steps up effort in its target of boosting domestic gas utilisation by importing Phosphate from Morocco.
According to a statement signed by the Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Wabote Tuesday night, Sylva led the Nigerian delegation to the agreement signing ceremony at Marrakech, Morocco, while the Chief Executive Officer of OCP Africa, Mr. Anouar Jamali, signed for the Kingdom of Morocco.
The deal witnessed by Mr. Timipre, Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, Governor of Akwa Ibom, Mr. Udom Emmanuel, Jigawa state governor, Badaru Abubakar and Managing Director of Nigeria Sovereign Investment Authority (NSIA), Mr. Uche Orji, brought about an agreement that, Nigeria will import phosphate from the Kingdom of Morocco and deploy it in the production of blended fertiliser for the local market and export and also produce Ammonia for export to Morocco.
According to its proponents, the transaction, would enhance Nigeria-Morocco bilateral collaboration and promote the development of hydrocarbons, agriculture, and commerce in both countries.
However, the Nigerian government has plans to establish an Ammonia plant at Akwa Ibom state, while NNPC and NCDMB will take part of the equity in the Ammonia plant when the Final Investment Decision (FID) is taken.
Sylva said that the project would broaden economic opportunities for the two nations and improve the wellbeing of the people, adding that it will also impact positively on agriculture, stimulate the growth of gas-based industries and increased job creation.
He said President Muhammadu Buhari had mandated the ministry and its agencies and other government agencies to give maximum support for the project.
He said, “He mandated me to ensure that at least the first phase of this project is commissioned before the expiration of his second term in office in 2023.”
The MOUs will also serve as support for the 2nd phase of the Presidential Fertiliser Initiative; shareholders agreement for the creation of the joint venture company to develop the multipurpose industrial platform and MOU for equity investment by the NNPC in the joint venture and support of the gas sector.
Other agreements were term sheet for gas sales and aggregation agreement and MOU for land acquisition and administrative facilitation to the establishment of the multipurpose industrial platform for gas sales and aggregation agreement.
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