The Federal Government announced on Tuesday that a consortium of South Korean investors is set to establish four refineries in Nigeria, each with a capacity of 100,000 barrels. This initiative is part of the government’s broader efforts to attract investment into the country’s oil sector.
Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), shared the development at the maiden summit organized by the Crude Oil Refineries Owners Association of Nigeria in Lagos. He explained that the government is encouraging private investors to build refineries by creating an open and conducive environment.
“We recently approved an invitation to a South Korean consortium to establish four model refineries across different locations in Nigeria,” Lokpobiri stated. He added that the public-private partnership (PPP) model is being adopted to drive investment in the midstream and downstream oil sectors, facilitating the construction of modular and larger-scale refineries.
Lokpobiri emphasized that the government is committed to ensuring energy security by supporting equity investments in both modular and larger refineries. He also highlighted the Nigerian Upstream Petroleum Regulatory Commission’s guidelines to guarantee local refineries access to feedstock, ensuring transparency in the oil industry.
He further reassured that the full deregulation of the downstream sector is on the horizon, with plans to mitigate its impact on the poor. The government is also working on easing refinery equipment importation through tax exemptions to boost Nigeria’s self-sufficiency in petroleum production.
The minister revealed that the Petroleum Industry Act (PIA) is under review to allow a portion of the National Gas Infrastructure Fund to support refinery development. Additionally, he mentioned that the Petroleum Technology Development Fund and Nigerian Content Development and Monitoring Board are prioritizing partnerships for knowledge transfer and research in the refining sector.
In an effort to combat crude oil theft and illegal refining, the ministry has established an international emergency committee focused on finding local solutions to improve in-country refining capacity.
