NIGERIA is set to host Africa’s largest gas-to-methanol plant, a project aimed at significantly reducing carbon emissions and transforming natural gas into valuable chemicals for various industries, including solvents, paints, plastics, and car parts. The plant, located in Akwa Ibom, will produce 1.8 million tonnes of methanol per year in its initial phase, diversifying the local economy and generating over 18,000 jobs.
The Africa Finance Corporation (AFC), a leading infrastructure solutions provider on the continent, is spearheading the project’s development by arranging a facility to de-risk the venture and support its financial closure. AFC is also providing financial advisory services to the project sponsors. The initiative is led by Blackrose, a project development firm, in collaboration with the International Finance Corporation (IFC), the private sector arm of the World Bank Group.
Nigeria, which holds 200 trillion cubic feet of natural gas reserves—the largest in Africa—has long faced challenges with gas flaring, a practice that has caused health issues for local communities. This new project aims to harness these vast reserves, converting them into a valuable, low-carbon industrial feedstock.
‘This innovative project turns a significant environmental challenge into an opportunity for Nigeria to lead in low-carbon manufacturing and energy systems,’ said Samaila Zubairu, President and CEO of AFC. ‘Our partnership with Blackrose and IFC underscores our commitment to Africa’s transition to net zero, emphasising rapid industrialisation and job creation.’
The project will be developed in two phases, each with a production capacity of 1.8 million tonnes per annum. The first phase will focus on producing low-carbon methanol, which is essential for manufacturing everyday products and serves as a lower-emission alternative fuel. The second phase will expand to include ammonia production, crucial for fertilizer manufacturing.
By using advanced energy-efficient methods, the plant is expected to achieve lower carbon intensity than traditional methanol production techniques. It will also incorporate carbon capture strategies to further reduce emissions.
During its construction phase, the plant is projected to create over 2,500 local jobs, with an additional 16,000 jobs expected indirectly through the economic activities it will stimulate. This project represents a significant step forward in Nigeria’s efforts to reduce its carbon footprint while boosting economic growth and industrial capacity.
