A consortium of South Korean investors is set to build four 100,000-barrel capacity refineries in Nigeria, as part of the Federal Government’s efforts to boost the nation’s refining capacity. The announcement was made by the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, during the inaugural summit organised by the Crude Oil Refineries Owners Association of Nigeria (CORAN) in Lagos.
Lokpobiri confirmed the government’s support for the initiative, stating, “We encourage investors to build limited refineries by providing an open environment. A recent approval was granted to invite a consortium of investors from South Korea, which intends to establish four 100,000-barrel-model refineries in four different locations in Nigeria.”
Public-Private Partnerships to Unlock Investment
The Minister emphasised that the government’s approach to encouraging investment in the oil and gas sector is rooted in public-private partnerships (PPP). These partnerships are critical to driving both midstream and downstream development. Lokpobiri added, “We have adopted the public-private partnership model to unlock investment in the midstream and downstream segments of the oil and gas sector, which will lead to the establishment of more modular and mega refineries.”
This approach ensures that local refineries have access to domestic crude supply, thanks to the Nigerian Upstream Petroleum Regulatory Commission’s domestic crude supply obligation guidelines. These guidelines are designed to guarantee feedstock availability for the nation’s refineries, both existing and new.
Support for Refinery Development and Energy Security
As part of its broader energy security strategy, the government is also facilitating access to tax exemptions and other incentives to attract refinery equipment imports, further enhancing the country’s self-sufficiency in petroleum production.
Lokpobiri noted, “The ministry has facilitated easier access to existing tax and other exemptions on refinery equipment importation, which is part of our plan to make Nigeria self-sufficient for petroleum producers and become Africa’s petroleum refining hub.”
He also disclosed plans to revise the Petroleum Industry Act (PIA) to allow the National Gas Infrastructure Fund to be used in supporting refinery development. “We will initiate the review of the PIA to enable this. Meanwhile, CORAN as a body should take up the campaign,” Lokpobiri urged.
Knowledge Transfer and Local Expertise Development
To build local capacity and expertise in refining operations, the government plans to collaborate with international institutions on knowledge transfer initiatives. This includes the development of an apprenticeship programme that will be run in partnership with existing refineries.
“In no distant time, we intend to create the apprenticeship programme in collaboration with existing refineries to develop expertise in our refinery operations,” Lokpobiri said.
On Oil Theft
To combat crude oil theft and illegal refining, Lokpobiri revealed that the Ministry of Petroleum has established an international emergency committee focused on finding local solutions to in-country refining issues. This is part of the government’s ongoing commitment to stabilising and growing the nation’s oil sector while ensuring transparency and efficiency.
