A consortium of South Korean investors is set to build four refineries in Nigeria, each with a capacity of 100,000 barrels, the Federal Government revealed on Tuesday. The announcement was made by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, during the inaugural summit organized by the Crude Oil Refineries Owners Association of Nigeria (CORAN) in Lagos.
Lokpobiri explained that the government is actively encouraging investment in the refinery sector by creating an open and conducive environment for investors. He confirmed that recent approval had been granted to invite the consortium, although the group’s name was not disclosed.
“We have adopted the public-private partnership model to unlock investment in the midstream and downstream sectors of the oil and gas industry. This initiative will lead to the establishment of more modular and mega refineries,” Lokpobiri stated.
He emphasized that the government’s openness to equity investment in modular and upcoming refineries is part of a broader strategy to ensure Nigeria’s energy security.
To support local refineries, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has introduced new guidelines for domestic crude supply, ensuring transparency in the oil sector and stable access to crude feedstock.
Lokpobiri also highlighted the government’s commitment to deregulating the downstream sector completely, promising frameworks that would mitigate the impact of these reforms on vulnerable populations. He mentioned that the government had facilitated easier access to tax exemptions for refinery equipment importation as part of its broader plan to make Nigeria a self-sufficient petroleum producer and an African refining hub.
He further noted that the Petroleum Industry Act (PIA) had established the National Gas Infrastructure Fund to support infrastructural development. However, the minister suggested that a portion of the fund should also be allocated to support refinery infrastructure, similar to investments in the gas value chain.
“In the coming months, we intend to initiate a review of the PIA to enable this. Meanwhile, we encourage CORAN to champion this campaign,” Lokpobiri said.
He concluded by discussing efforts to develop local expertise in refinery operations through apprenticeship programs in collaboration with existing refineries, and reaffirmed the ministry’s commitment to addressing crude oil theft and illegal refining by setting up a dedicated emergency committee to find homegrown solutions.
This development signals a significant step towards transforming Nigeria’s oil sector, with potential to reduce dependency on imported refined products and create local jobs in the refining industry.