The Nigerian government has signed an agreement with a US-Nigerian consortium to build six oil refineries in Nigeria with combined capacity of 180,000 b/d at a cost of $4.5 billion, a spokeswoman for Nigeria’s trade ministry said Tuesday.
“The federal government on Monday signed agreement with Vulcan Petroleum Resources Limited and Petroleum Refining and Strategic Reserve Limited to build six modular refineries in Nigeria,” the spokeswoman Yemi Kolapo said.
“The Minister of Trade and Investment, Dr. Olusegun Aganga, signed on behalf of the Federal Government. The vice president of Vulcan Petroleum Resources, Mr. Jim Mansfield, and the chairman of Petroleum Refining and Strategic Reserve, Mr. Edozie Njoku signed on behalf of the investors,” she said.
Two of the refineries are expected to be completed over the next 12 months, Kolapo added.
Africa’s top oil producer looks up to private investors to build refineries in the country to boost local supply of petroleum products and curb imports, which have been a drain on its finance.
Oil-rich Nigeria currently imports over 80% of its domestic fuel needs because of the poor condition of the four state-owned refineries.
Nigeria has entered into similar deals with Chinese investors to build three greenfield refineries with total capacity of 750,000 b/d. The projects are, however, yet to get under way more than two years later.
