The Nigerian government has announced plans for a consortium of South Korean investors to build four refineries, each with a capacity of 100,000 barrels per day, at different locations across the country.
This initiative was unveiled by Heineken Lokpobiri, the Minister of State for Petroleum Resources, during the inaugural summit hosted by the Crude Oil Refineries Owners Association of Nigeria in Lagos.
The government is actively encouraging investments in refinery construction by fostering a welcoming environment. While the specific name of the South Korean consortium was not disclosed, Lokpobiri stated, “We encourage investors to establish limited refineries by providing an open environment. Recently, we approved an invitation for a consortium from South Korea to set up four 100,000-barrel refineries in Nigeria.”
The minister also highlighted the adoption of a public-private partnership model aimed at unlocking investments in both the midstream and downstream oil and gas sectors, which will facilitate the establishment of additional modular and mega refineries.
Furthermore, he emphasized the importance of collaborating with stakeholders to effectively implement the recommendations from the Modular Refinery Committee, which aims to provide special concessions to local refinery owners, ensuring a steady supply of feedstock for their operations.
The government confirmed its commitment to fully deregulating the downstream sector, stating, “We will ensure the deregulation is 100 percent and establish a framework to mitigate impacts on the poorer populations.”
To support this goal, the ministry has made efforts to simplify access to tax exemptions and other incentives related to the importation of refinery equipment, aiming to position Nigeria as a self-sufficient petroleum producer and a refining hub in Africa.
In addition, the government plans to review the Petroleum Industry Act (PIA) to facilitate these initiatives. Lokpobiri urged CORAN, the association, to take an active role in advocacy. The ministry is prioritizing partnerships with international organizations for knowledge transfer in refinery operations and investing in research and development to advance technological innovation in the sector.
Looking ahead, the government intends to launch an apprenticeship program in collaboration with existing refineries to cultivate expertise in refinery operations.