A group of South Korean investors has finalized plans to make a significant investment in Nigeria’s oil industry by constructing four refineries, each with a capacity of 100,000 barrels per day. This announcement was made by the Federal Government on Tuesday. The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, shared the details during the inaugural summit organized by the Crude Oil Refineries Owners Association of Nigeria in Lagos.
Lokpobiri emphasized that the government is fully committed to creating an open and welcoming environment for foreign and local investment in the country’s refining sector. The recent approval for the consortium of South Korean investors to set up these refineries is a clear indication of this effort. Although the minister did not disclose the name of the consortium, he assured that the government is working to make such investment opportunities appealing and accessible.
He further explained that the Federal Government has adopted a public-private partnership model to unlock new opportunities in both the midstream and downstream segments of the oil and gas sector. This approach is expected to lead to the establishment of more refineries across Nigeria, both modular and large-scale, helping to meet the country’s growing energy needs.
The oil minister pointed out that this investment will greatly improve energy security in Nigeria by expanding local refining capacity. He stated that the Nigerian Upstream Petroleum Regulatory Commission has already developed guidelines to ensure that domestic crude oil is available for use in these refineries. These measures will enhance transparency in the oil industry and guarantee access to raw materials for local refinery operators.
To further encourage investment, the government has prioritized the recommendations made by the Modular Refinery Committee. Lokpobiri said these recommendations are being implemented to provide local refineries with the resources they need, ensuring a steady supply of feedstock. This move is part of a broader strategy to make Nigeria a self-sufficient petroleum producer and a key player in Africa’s refining industry.
In addition, the government has made it easier for investors to bring in equipment by facilitating access to existing tax breaks and exemptions. Lokpobiri highlighted that this is all part of the Federal Government’s broader plan to turn Nigeria into Africa’s refining hub.
Moreover, the minister noted that a review of the Petroleum Industry Act (PIA) is on the table, with the aim of channeling part of the National Gas Infrastructure Fund towards refinery development. The government also plans to partner with international institutions to enhance the skills and knowledge of Nigeria’s refinery workers, particularly through apprenticeship programs designed to improve expertise in refinery operations.
Finally, Lokpobiri mentioned the government’s efforts to curb illegal refining and oil theft. He revealed that a new international emergency committee has been established to develop home-grown solutions to refining challenges within the country.