The Joint English and Nigeria team of Olaniwun Ajayi has advised BUA on the US$1 billion expansion of its Kalambaina Plant in Sokoto State. The US$500 million momentous expansion debt financing was led by the International Finance Corporation (IFC) and included other esteemed financial institutions such as the African Development Bank (AfDB), Africa Finance Corporation (AFC), and Deutsche Investitions- und Entwicklungsgesellschaft (DEG). With this substantial investment, BUA plans to quadruple the plant’s capacity to an impressive 8.0 million tons per annum (MTPA). The expansion will also integrate renewable energy sources into the production value chain and expand distribution channels, storage, and associated facilities.
With BUA’s visionary expansion of the Kalambaina Plant, Northwest Nigeria is set to become a shining beacon in the Sahel on completion. According to Wolemi Esan, the Deputy Managing Partner, who co-led the Nigeria team “this transformative project stands as a testament to BUA’s commitment to excellence. The project holds immense potential to drive sustainable development, foster economic prosperity, and uplift the entire region. It also sets a precedent for the viability of large-scale projects in the region and beyond.”
Securing such a substantial financing package amidst challenging economic circumstances in Africa’s largest economy represents a bold move. However, when considering the prevailing factors and the broader vision of fostering sustainable wealth creation for investors and local communities in the sub-Saharan African market, this decision emerges as a well-informed strategy. From meticulous structuring to seamless execution, this financing serves as a prime example of how international investors and project companies navigate risks, concerns, and opportunities in Africa.
According to Dr. Gabriel Onagoruwa, the Chair of the Finance and Project Development practice who led the English law team on the transaction, “this project goes beyond economic growth, as it aims to address pressing social issues as well. With an estimated goal of creating approximately 1,000 direct jobs and 10,000 indirect jobs, the expansion will significantly alleviate the region’s unemployment rate with a corollary positive impact on critical indicators such as maternal and child mortality rates and literacy levels, which have long plagued Nigeria’s Northern region.”
In Nigeria, the Olaniwun Ajayi legal team was led by Deputy Managing Partner Wolemi Esan and Partner Ibi Ogunbiyi. Senior Associate Chinenye Ajayi and Associate Ganiyat Seriki complemented their effort. Partner and Chair of the Finance and Project Development Practice, Dr. Gabriel Onagoruwa spearheaded the English team, alongside Partner Chuks Ibechukwu and Senior Associate Juanita Derex-Briggs. The lenders were advised by UUBO in Nigeria and Pinsent Masons as international counsel.