Kehinde Fajobi
The Federal Government has announced that a consortium of South Korean investors is planning to construct four 100,000-barrel capacity refineries across various locations in Nigeria
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed this on Tuesday at the inaugural summit of the Crude Oil Refineries Owners Association of Nigeria in Lagos.
Lokpobiri stated that the Federal Government is actively creating a welcoming environment to attract investors into the refining sector.
“We encourage investors to build limited refineries by providing an open environment. A recent approval was granted to invite to Nigeria a consortium of investors from South Korea, which intends to establish four 100,000-barrel-model refineries in four different locations in Nigeria,” he said.
He also emphasized that the government is adopting a public-private partnership model to drive investment in the midstream and downstream sectors of the oil and gas industry, which he said would lead to the establishment of both modular and large-scale refineries.
In his address, Lokpobiri highlighted the government’s commitment to ensuring energy security by opening up opportunities for equity investment in modular refineries and other upcoming projects.
He added, “The Nigerian Upstream Petroleum Regulatory Commission has developed and published domestic crude supply obligation guidelines to ensure transparency and access to feedstock for local refineries.”
He further stated, “We prioritise and work with stakeholders to implement recommendations from the Modular Refinery Committee, granting special concessions to local refinery owners to secure feedstock for their operations.”
Regarding the deregulation of the downstream sector, the minister said the government is fully committed to achieving 100 per cent deregulation, while putting frameworks in place to mitigate the impact on the most vulnerable Nigerians.
He also noted that efforts have been made to facilitate tax and import exemptions for refinery equipment, aimed at making Nigeria a self-sufficient petroleum producer and a refining hub for Africa.
Lokpobiri also revealed that the government is exploring the possibility of using the National Gas Infrastructure Fund, created under the Petroleum Industry Act (PIA), to support refinery infrastructure development. He mentioned plans to initiate a review of the PIA to facilitate this.
He further explained, “We are prioritising partnerships through the Petroleum Technology Development Fund and the Nigerian Content Development and Monitoring Board to enhance knowledge transfer, manpower training, and investment in research and development in the refining sector.”
As part of efforts to curb crude oil theft and illegal refining, Lokpobiri said the ministry has set up an international emergency committee to develop home-grown solutions for in-country refining.
The minister also hinted at future plans for an apprenticeship programme in collaboration with existing refineries to build expertise in Nigeria’s refinery operations.