In a significant development for Nigeria’s oil sector, a consortium of investors from South Korea has finalized plans to establish four refineries, each with a capacity of 100,000 barrels per day.
This announcement was made by the Minister of State for Petroleum Resources, Heineken Lokpobiri, during the inaugural summit hosted by the Crude Oil Refineries Owners Association of Nigeria in Lagos.
Lokpobiri emphasized the Nigerian government’s commitment to creating a favorable environment for investors, stating that recent approvals have been granted to invite this consortium to the country. He noted, “We are encouraging investors to build modular refineries by providing an open and supportive landscape for investment.”
The minister elaborated on the government’s strategy to employ a public-private partnership model to stimulate growth in the midstream and downstream oil and gas sectors. This initiative aims to lead to the establishment of both modular and large-scale refineries, ultimately enhancing Nigeria’s energy security.
To ensure transparency and support local refineries, the Nigerian Upstream Petroleum Regulatory Commission has developed guidelines for domestic crude supply obligations. “We are committed to working with stakeholders to implement recommendations that will guarantee access to feedstock for local refineries,” Lokpobiri added.
Further, he assured that the ministry aims to fully deregulate the downstream sector and is establishing frameworks to cushion the impact on lower-income populations. Enhanced access to tax exemptions for refinery equipment imports is also part of the plan to position Nigeria as Africa’s leading petroleum refining hub.
Lokpobiri indicated that the Petroleum Industry Act (PIA) will be reviewed to facilitate funding for refinery infrastructure, and he called on the Crude Oil Refineries Owners Association of Nigeria (CORAN) to actively campaign for these initiatives.
He also highlighted efforts to forge partnerships for knowledge transfer and technological advancements in refinery operations.
In a bid to address challenges such as crude oil theft, the ministry has set up an international emergency committee focused on developing home-grown solutions for in-country refining, paving the way for a more sustainable and secure oil industry in Nigeria.
