Rivers State has taken a step towards establishing a $3.5 billion methanol and fertiliser plant in Bonny following the signing of a Memorandum of Understanding (MoU) between Best Option Chemical Limited and China National Chemical Engineering Group Corporation (CNCECC).
The proposed project is expected to strengthen the state’s petrochemical industry, create economic opportunities and support the use of Nigeria’s natural gas resources for industrial production.
Chamberlain Peterside, Director-General of the Rivers State Investment Promotion Agency (RSIPA), said the agency facilitated discussions between the investors, relevant government ministries, prospective landowners and the host community.
According to Peterside, the project team assessed three possible locations: Ahodaa, Onne and Bonny. The locations were evaluated based on factors including access to natural gas, which is a key raw material for producing methanol and fertiliser.
Bonny was eventually selected as the preferred location following further assessments and consultations. Its access to natural gas and proximity to the ocean were identified as important advantages.
Peterside said RSIPA also supported engagements with the state’s Ministry of Lands and Ministry of Environment, including land surveys and the environmental assessment process.
Franklin Uchenna Okafor, managing director of Best Option Chemical Limited, said the proposed facility would cost $3.5 billion, with CNCECC expected to provide 80 per cent of the investment, equivalent to about $2.8 billion.
He said discussions on the project began on January 12, 2026, and involved the project proponents, their Chinese partners and other stakeholders, including the Nigerian National Petroleum Company Limited.
The proposed investment is expected to expand industrial activity in Bonny and create opportunities for businesses and workers linked to construction, manufacturing and related services.
However, the agreement remains an initial step rather than a final investment decision. Further agreements, financing arrangements, regulatory approvals and other requirements must be completed before construction can begin.
Peterside said the state investment agency would continue to support engagement between the investors and relevant stakeholders as the project advances.
