The economy of Rivers State, estimated at a $20bn, and aspiring to chase Lagos of about $259bn, has received a shot in the arm with the signing of a $3.5bn deal for kickoff of another petrochemical plant, this time in Bonny, and island that just got a road.
BusinessDay gathered that the newly commissioned road to Bonny helped the island to win the location from the investors while the peace and political stability that just returned to the state was seen as the biggest factor that helped in the final investment decision (FID) in favour of Rivers.
The preliminary deal is said to be for the acquisition of a 500-hectare land in Bonny owned by Sene Kalada, a Wari Alabo (house chief) who is identified in the deal as the landowner.
The MoU was signed between Best Option Chemical Limited represented by Frank Okafor with CNCEC of China represented by Lee Edwards on one hand and Kalada on the hand. The deal was midwifed and the signing was witnessed by the Rivers State Investment Promotion Agency (RSIPA) led by Chamberlain Peterside, the Director-General.
The $3.5bn deal is equivalent to approximately ₦4.66 trillion) using the official market rate of ₦1,331.09 per USD for October 16, 2026, but unofficial rate would be ₦1,390 per USD, or ₦4.87 trillion.
Likely impact:
Industry experts and studies conducted online indicate that pumping a $3.5 billion petrochemical investment in a strategic hub like Rivers State, Nigeria, would definitely yield a massive footprint across direct production capacity, fiscal revenue, infrastructure, and job creation of up to 35,000 directly and indirectly.
Experts say in the immediate context of Nigeria’s current industrial landscape, this specific investment tier matches the total capital footprint of the world-scale Indorama Eleme Petrochemicals & Fertilizer complex in Port Harcourt.
“The likely size, economic value, and operational metrics generated by a $3.5 billion investment break down across four major value vectors: Macro-economic value & export footprint; Annual export revenue comparable to models like the Brass and Bonny petrochemical projects and could generate at least $1.5 billion annually in export earnings from polymers, fertilizers, and methanol.
There is a foreign exchange savings likely impact by localized processing of natural gas into raw materials for local manufacturing, packaging, and agriculture. This could save Nigeria roughly $200 million annually in import substitution.
On jobs, the construction phase could fetch between 15,000 and 30,000 temporary jobs over a 3- to 5-year build window covering engineering, procurement, civics, and site development; but during operational stage, it could up to 5,000 permanent, highly skilled jobs in plant operations, technical maintenance, and chemical engineering, alongside tens of thousands of indirect logistical jobs.
In feedstock consumption, the plant is expected to typically lock in long-term Gas Sale and Purchase Agreements (GSPA) to consume around 270 million standard cubic feet (mmscf) of gas per day. It typically fields a capacity of 1.4 million to 2.8 million metric tonnes per annum (MTPA) of end products like urea fertilizer, polypropylene, or methanol.
Chamberlain Peterside reveals how the $3.5bn came:
On receipt of that proposal from Best Option Chemicals Limited, we reached out to them and had discussions. After that, we proposed a site visit based on our knowledge of the geography. During the site visit, they were able to go to three locations, including Ahoada, which is at the upland area, and then Onne, and then Bonny. The locations were selected and based on their comparative advantages. They have gas, natural gas which is the main feedstock for the investment, and access to the sea. But upon further engagement and discussions, Best Option decided that the most suitable location would be Bonny. We told them we can only help to facilitate their outreach to potential landowners or families or the community. And I think in that process they were able to identify and engage a landowner that is based in Bonny.
The land, with further assessment and visits, the land was adjudged to be suitable in terms of size, location, and every other parameter. And based on that, they conducted their own due diligence, their own negotiations. And I have to say that the job of the Investment Agency is to facilitate.
We handhold, we support, so that we make sure that the investors are doing the right thing. And since then, we have also made an introduction to the Ministry of Lands and conducted a survey, as well as Ministry of Environment to help them conduct the environmental impact assessment.
So, we think that these efforts have now led to this moment where the parties have decided to codify all their discussions and document their agreement with an MoU.
And as we do know, MoU is the first step. It’s not a final partnership agreement, neither is it a final investment decision; all of that will come subsequently. But at this point in time, I want to say that we are pleased that we have gotten to this stage.
Moving forward, we hope that the parties will work together. And if there’s any way we can support, facilitate, and guide, we’re here to always do that.
We have our board secretary, who is our chief legal officer; we have our member of the board, who is also a technology professional, seasoned and very experienced people with us. So we definitely are doing things the right way, we believe we are here to always to support investors.
Franklin Okafor, CEO, Best Option Chemical Limited:
It’s a great pleasure to be here. As the DG said, this journey started since 12th of January 2026, and today we’re coming together to sign the MoU. Best Option Chemical Limited is the promoter, bringing the investors together—the local investor, NNPC is involved as well. We have come a long way. We started searching for land and finally, we made up our mind to site that company in Bonny, because of the nearness of the gas, closeness to the ocean, and in fact, it’s so suitable for us.
We are happy to work with our dear elder brother, Chief Wari-Alabo, gave us the best location to site the company. We are intending to produce methanol and fertilizer. Our partner is a great company in the world, not only in Africa or China, they are one of the top 10.
They are partnering with us, and they have a lot of experience as well in Nigeria, which he’s going to explain. They have been involved in different projects. They’re ready to finance 80% of it, and they have shown their capacity. So, for the moment, I think on the day of breaking of ground, we’re going to make more speech.
Gupsong Li Edwards: Director, CNCEC: This is just the beginning:
Thank you, the Rivers State people. We are an EPC plus financing contractor. We are very glad to work together with Rivers State and also the local community. While we are doing the EPC (engineering, procurement, and construction) works, so we definitely will make more connections with the local community to provide more work positions to create value to local community. Also, we are very glad to see the first step of where to start. I know every party has done a lot and make a lot of efforts to make this project move in smoothly. And we are very glad. So we hope everyone can work together to make this project go smoothly and faster.
CNCEC International, as an international EPC contractor, so we are probably ranked by ENR as number one in oil and gas, especially in midstream and downstream.
So, our focus as we are in Nigeria and involved in the LNG terminal, like the petrochemical plants, like use of the natural gas, comprehensive utilization, mainly use the natural gas to produce the ammonia and urea, to produce the methanol, and to produce such kind of petrochemicals. We are also focused on use of the natural gas to generate power or any kinds of feedstock to produce the power.
Yes, our business focus is on oil and gas midstream and downstream. We know that Rivers State is a state which is rich in oil and gas. So, I hope this project is just a start, and in the future, I believe we will have more business, we will collaborate together.
And as a state-owned enterprise, we have very good relationship with China’s financial institutions and also some international financial institutions. So we are able to provide financing services for the project.
Sene Kalada Jumbo: Land owner:
Promised Land Integrated Farm Settlement has been there for almost 30 years. I was contacted and we looked at various places within my domain. I’m a Wari-Alabo, a house chief of Fat Jumbo, but I also have my farm due me.
So, when we checked the other side, it was not very suitable, and so they decided to occupy my farm settlement. So, well, I agreed and saw it as an improvement, because I’m into farming, livestock, and all those type of things. So, I’m happy to engage them and partner with them on equity basis. And so, it’s a good one. It’s a win-win situation.
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