Nigeria is embarking on a monumental project to establish Africa’s largest gas-to-methanol plant, aiming to significantly cut carbon emissions while transforming natural gas into essential industrial chemicals like solvents, paints, plastics, and car parts.
Situated in Akwa Ibom State, south of Nigeria, the plant’s initial phase will produce 1.8 million tonnes of methanol annually, diversifying the local economy and generating over 18,000 jobs. The Africa Finance Corporation (AFC), a major infrastructure solutions provider in Africa, is leading the charge by arranging financing to reduce risks and facilitate the project’s financial closure.
AFC is also offering financial advisory support to the project’s sponsors. The initiative is spearheaded by Blackrose, a project development firm, in partnership with the International Finance Corporation (IFC), the private sector arm of the World Bank Group.
With 200 trillion cubic feet of natural gas reserves—the largest in Africa—Nigeria has long battled issues related to gas flaring, which has posed health risks to local communities.
This new initiative seeks to harness the country’s gas reserves and convert them into a valuable, low-carbon industrial resource.
Samaila Zubairu, President and CEO of AFC, highlighted the project’s significance: “This innovative venture transforms a major environmental challenge into a key opportunity for Nigeria to lead in low-carbon manufacturing and energy systems. Our collaboration with Blackrose and IFC underscores our commitment to Africa’s net-zero transition, focusing on industrial growth and job creation.”
The plant will be developed in two phases, each capable of producing 1.8 million tonnes of methanol annually. The first phase will prioritize the production of low-carbon methanol for everyday products and as a cleaner fuel alternative.
The second phase will expand into ammonia production, a critical component for fertilizer manufacturing. Using advanced energy-efficient processes, the plant is expected to achieve a lower carbon footprint than traditional methods of methanol production.
It will also incorporate carbon capture technologies to further reduce emissions. During construction, the plant is projected to generate over 2,500 direct local jobs, with another 16,000 jobs created indirectly through the economic ripple effects.
