Nigeria Targets Urea Export Market as Fertiliser Capacity Expands

Nigeria is positioning itself to enter the global urea export market as ongoing investments in the midstream oil and gas sector begin to yield results, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The authority disclosed that the country is expected to commence urea exports by 2028, alongside large-scale fertiliser shipments, as domestic production capacity continues to expand. This development is part of a broader strategy to transform Nigeria into a hub for value-added oil and gas products rather than a net importer of processed commodities.

Speaking during an inspection tour of fertiliser and chemical production facilities operated by Indorama Eleme Fertiliser and Chemicals Limited in Rivers State, the Chief Executive of NMDPRA, Saidu Mohammed, said the scale of current investments in the midstream segment supports Nigeria’s ambition to compete globally.

He explained that the midstream sector remains central to the country’s industrial future but requires significant capital to unlock its full potential. According to him, Nigeria needs investments estimated between $30 billion and $50 billion to fully establish itself as a centre for oil, gas, and secondary derivatives.

Mohammed stressed that continued importation of products such as urea and fertilisers was no longer justifiable given the level of private-sector participation now evident in the industry. He pointed to ongoing expansions at existing plants, including Indorama and other fertiliser facilities across the country, as indicators that Nigeria is approaching export readiness.

He noted that the country’s ambition extends beyond being an energy producer to becoming a manufacturing hub for secondary products derived from hydrocarbons, adding that fertilisers and similar inputs are essential for economic diversification and food security.

Commending Indorama’s investment footprint, Mohammed described the company’s operations as a model of the type of midstream development required to drive industrial growth. He said increased investments in fertiliser plants and other value-addition projects would accelerate Nigeria’s economic transformation.

Explaining the choice of Rivers State for the facility tour, Mohammed said the state hosts a concentration of strategic oil and gas assets, including refineries, processing plants, and manufacturing facilities, making it ideal for assessing sector-wide activities.

He added that the regulator’s role is to support operators by creating an enabling environment that encourages expansion while also attracting fresh investments into the midstream and downstream segments.

In response, the Chief Executive Officer of Indorama Eleme Fertiliser and Chemicals Limited, Munish Jindal, said the visit provided an opportunity for regulators to gain deeper insight into the realities of midstream operations, including achievements and challenges.

Jindal noted that the company has maintained a long-standing presence in Nigeria and acknowledged improvements in regulatory understanding of midstream manufacturing over the years. While expressing appreciation for the existing regulatory framework, he said certain provisions no longer align with the operational realities of fertiliser manufacturing and called for targeted exemptions where necessary.