CSCHEM expansion (IFC-50266)

Countries
  • Nigeria
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
CSCHEM Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 61.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Sep 25, 2025

Disclosed by Bank May 19, 2025

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the proposed investment is a US$25m A loan to Cepsa Quimica SA’s affiliate companies, aimed at expanding its manufacturing operations for chemicals and additives in home and laundry care segments in Nigeria. CSCHEM Limited (HoldCo) has two operating companies (OpCo), SIL Chemicals Limited (SIL) and Reliance Chemical Products Limited (RCPL), which are involved in manufacturing and selling chemical products and trading detergent chemicals in Nigeria.

The investment involves two key expansions. First, the sulphonation plant will be upgraded to significantly increase the production of HLAS, an essential raw material for detergent manufacturing. This expansion aims to meet the rising demand in Nigeria and reduce dependence on imports. Second, a new regenerative furnace will be installed at the sodium silicate glass plant to boost the production of sodium silicate solids. Sodium silicate is a versatile chemical used in various industrial applications, including detergents, adhesives, and paper products. Both expansions are designed to strengthen local manufacturing capabilities and support the growth of related industries in the region. 

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

This is a Category B project based on IFC’s 2012 Policy on Environmental and Social Sustainability as E&S risks and impacts associated with the project are limited, site-specific, and can be readily addressed through generally accepted mitigation measures described in this document and the Environmental and Social Action Plan (ESAP).

Key E&S risks and impacts associated with the project include: (a) corporate and site level E&S capacity and management systems for its operations; (b) industrial risks assessment (i.e. HAZOP study); (c) implementation of labour and working conditions in line with IFC PS2 and legal requirements in Nigeria; (d) Occupational Health and Safety (OHS) management systems including contractors / OHS risks from long term exposure to chemicals; (e) liquid and solid waste management; (f) road traffic safety of distribution network; (g) assessment and management of security arrangements; (h) stakeholder engagement; and (i) gender based violence issues.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The project is expected to cost US$61 million including (i) IFC A loan of US$25 million (ii) US$20 million in commercial bank term loan from the Development Finance Institution, Nigeria (iii) US$16m equity.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

CSCHEM Limited is a distributor of chemical raw materials. The company is 70% owned by SIL Holdings Ltd and 30% owned by CEPSA Quimica SA. CEPSA is one of the leading producers of LAB globally and is owned by Mubadala Investment Company in UAE and Carlyle Group since 2019.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - CSCHEM Limited Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Contact Person: Prasanna Rajendran Company
Name: CSCHEM Ltd
Address: Plot No.C21/43 Anioma Road,
Agbara Industrial Estate, Agbara,
Ogun State, Nigeria
Email: prasanna@silchemicals.comPhone: +234 8141 306961

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works