The Federal Government of Nigeria has announced that a consortium of South Korean investors is set to build four refineries in Nigeria, each with a capacity of 100,000 barrels.
This was revealed by the Minister of State for Petroleum Resources, Heineken Lokpobiri, at the inaugural summit organized by the Crude Oil Refineries Owners Association of Nigeria in Lagos.
Lokpobiri emphasized the government’s commitment to creating a favorable investment climate in the refining sector, stating, “We are promoting the establishment of limited refineries by ensuring an open investment climate.” He added, “Recently, we approved the invitation of a South Korean consortium intending to build four model refineries.”
The minister further explained that the government is leveraging a public-private partnership model to encourage investments in the oil and gas sectors, focusing on the creation of modular and large-scale refineries. He expressed confidence that these initiatives will enhance Nigeria’s energy security, and said the government is open to equity investments in modular and new refinery projects.
He also highlighted efforts by the Nigerian Upstream Petroleum Regulatory Commission to develop domestic crude supply obligation guidelines, aimed at ensuring transparency and reliable access to feedstock for local refineries. “We are collaborating with stakeholders to effectively implement the Modular Refinery Committee’s recommendations,” Lokpobiri noted, adding that this will provide special concessions to local refinery owners.
Lokpobiri also touched on the government’s goal to deregulate the downstream sector, assuring that a framework would be established to mitigate the economic impact on vulnerable groups. The ministry is working to ease access to tax exemptions and incentives for the importation of refinery equipment as part of a strategy to position Nigeria as Africa’s refining hub.
To further support this vision, Lokpobiri mentioned, “The Petroleum Industry Act (PIA) has led to the creation of the petroleum ministry and the National Gas Infrastructure Fund,” and plans are in place to allocate part of this fund to develop refinery infrastructure.
The minister concluded by addressing the ongoing fight against crude oil theft and illegal refining activities, stating that the government has set up an international emergency committee to develop home-grown solutions for Nigeria’s refining challenges.
