An Assessment of the Financial and Economic Feasibility of a Fertilizer Manufacturing Facility in Nigeria

This study assesses the financial and economic feasibility of the fertilizer plant in Nigeria. And it analyses alternatives for the implementation of the fertilizer plant using the integrated method of investment appraisal. The analysis also helps in the estimation of the allocation of benefits to the government of Nigeria. In assessing the potential risks variables the sensitivity analysis was carried out. Inadequate food availability and food insecurity has a core effect on any nation and its inhabitants; it’s on this premise that the need for better technologies like fertilizers arose. Fertilizer is the added nutrient sources which help to nourish the plants with essential nutrients. Lack of fertilizer plant would result in low production of food to cater for the entire community needs. Having a urea plant in Nigeria as the reduced rate of producing natural gas would enhance agricultural productivity and reduce food scarcity. Venturing into a urea business in Nigeria would enhance the standard of living of Nigerian and would also be viable source of revenue. Keywords: Investment appraisal, financial analysis, economic analysis, stakeholder analysis, risk analysis, fertilizer plant, Nigeria.