A consortium of South Korean investors has finalized plans to build four refineries in Nigeria, each with a capacity of 100,000 barrels.
The announcement was made by Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources (Oil), during a summit organized by the Crude Oil Refineries Owners Association of Nigeria (CORAN) in Lagos.
Lokpobiri emphasized that the Federal Government is fostering an open environment to attract more investments in Nigeria’s oil and gas sector, specifically targeting the development of refineries.
The South Korean investors, whose identities were not disclosed, are expected to build the refineries across various locations in the country. This initiative is part of the government’s strategy to ensure energy security through partnerships with the private sector.
Lokpobiri further highlighted the government’s adoption of the public-private partnership model to unlock investment opportunities in Nigeria’s midstream and downstream oil and gas sectors.
The Nigerian Upstream Petroleum Regulatory Commission has also introduced domestic crude supply guidelines to ensure transparency and provide local refineries with access to necessary resources.
Moreover, the minister revealed that the government has facilitated tax exemptions on refinery equipment imports to make Nigeria a self-sufficient producer and exporter of petroleum products. The ultimate goal is to position Nigeria as Africa’s petroleum refining hub.
He also noted that an apprenticeship program will soon be introduced to build local expertise in refinery operations.
In a related development, Nigeria’s oil industry is expected to receive a $50 billion investment by November, with one investor contributing $20 billion.
Lokpobiri believes these investments will significantly boost oil production, aiming to increase the daily output from the current 1.7 million barrels to over 2 million barrels per day.
