During the inaugural summit of the Crude Oil Refineries Owners Association of Nigeria held in Lagos, the Minister of State for Petroleum Resources, Heineken Lokpobiri announced that a consortium of South Korean investors has finalized plans to construct four refineries in Nigeria, each with a capacity of 100,000 barrels per day.
Lokpobiri emphasized the Nigerian government's commitment to creating an inviting environment for foreign investments in the oil sector. He noted that recent approvals have been granted to welcome the South Korean consortium, although he did not disclose its name.
The minister stated, “We encourage investors to build limited refineries by providing an open environment,” highlighting the government's efforts to stimulate investment through public-private partnerships aimed at enhancing both midstream and downstream segments of the oil and gas industry.
The minister further explained that these initiatives are designed to bolster local refining capabilities and ensure energy security.
He pointed out that the Nigerian Upstream Petroleum Regulatory Commission has established guidelines for domestic crude supply obligations, which aim to improve transparency and guarantee access to feedstock for local refineries.
In his remarks, Lokpobiri reiterated the government's goal of fully deregulating the downstream sector while implementing frameworks that alleviate potential impacts on vulnerable populations.
He also mentioned ongoing efforts to simplify tax exemptions related to refinery equipment imports, positioning Nigeria as a potential hub for petroleum refining in Africa.
Moreover, Lokpobiri indicated that while the Petroleum Industry Act (PIA) has established a framework for funding through petroleum product sales, there is a need to allocate part of these funds towards infrastructure development for refineries.
He expressed intentions to review the PIA to facilitate this process.
