The Federal Government of Nigeria has announced plans by a consortium of South Korean investors to construct four refineries across the country, each with a capacity of 100,000 barrels per day. This was revealed by Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), during the inaugural summit organized by the Crude Oil Refineries Owners Association of Nigeria in Lagos.
Lokpobiri explained that the government is committed to fostering an investor-friendly environment for refinery development. He noted that recent approval was granted to the South Korean consortium to establish these refineries in different locations across Nigeria, though the consortium’s name was not disclosed.
“We encourage investors to build limited refineries by creating an open environment,” Lokpobiri said. “We’ve adopted a public-private partnership model to drive investment in the midstream and downstream sectors of the oil and gas industry. This will facilitate the establishment of more modular and mega refineries.”
The Minister highlighted the Federal Government’s readiness to support equity investments in both modular and large-scale refineries to enhance energy security. In line with this, the Nigerian Upstream Petroleum Regulatory Commission has introduced guidelines to ensure transparency and guarantee access to crude oil for local refineries.
He also mentioned efforts to cushion the impact of full deregulation of the downstream sector on the most vulnerable Nigerians. Additionally, the government has simplified access to tax exemptions and other incentives on refinery equipment imports to make Nigeria a self-sufficient petroleum producer and Africa’s refining hub.
Looking ahead, Lokpobiri revealed plans to review the Petroleum Industry Act (PIA) to allocate funds from the National Gas Infrastructure Fund towards refinery infrastructure development. The government is also prioritizing partnerships with international institutions for knowledge transfer and technological advancements in refinery operations.
To combat crude oil theft and illegal refining, Lokpobiri announced the formation of an international emergency committee focused on developing in-country refining solutions.
