Lanre Idris Mustapha
A group of South Korean investors has finalized plans to build four refineries in Nigeria, each with a capacity of 100,000 barrels per day, the Nigerian government announced on Tuesday.
In a statement revealed by Minister of State for Petroleum Resources, Heineken Lokpobiri, at a summit organized by the Crude Oil Refineries Owners Association of Nigeria in Lagos.
He explained that the government recently approved the invitation of the South Korean consortium, although he did not disclose the name of the group.
“We have approved the establishment of four refineries by a South Korean consortium in different locations across Nigeria. Each refinery will have a capacity of 100,000 barrels per day. This is part of our public-private partnership model to attract investment in the midstream and downstream oil and gas sectors, leading to more modular and large-scale refineries,” Lokpobiri stated.
He stressed that the government is committed to ensuring energy security by allowing equity investment in modular refineries and future projects.
Lokpobiri also highlighted the government’s plan to fully deregulate the downstream sector and provide tax exemptions for importing refinery equipment to make Nigeria a refining hub in Africa.
Additionally, he mentioned a proposed amendment to the Petroleum Industry Act (PIA) to allow the National Gas Infrastructure Fund to support refinery development. The government is also working on partnerships for knowledge transfer and will launch an apprenticeship program to develop local expertise in refinery operations.
To tackle crude oil theft and illegal refining, the ministry has set up a special committee focused on finding home-grown solutions to boost in-country refining.
