BARBARA BAKO, Abuja
The Bank of Industry (BOI) has signed a Memorandum of Understanding with the Export-Import Bank of China for a $500m facility for the establishment of modular refineries in Nigeria. The establishment of modular refineries is part of the Federal Government’s plan to end importation of petroleum products and to discourage illegal oil bunkering activities in the Niger Delta region.
To date, a total of 38 operating licenses had been granted by the Federal Government to establish modular refineries in Niger Delta and the facility is focus on these licensees to stimulate economic growth, drive investments and provide jobs for Nigerians A statement from the Bank of Industry said the facility would be utilized to finance the purchase of equipment and machinery from China by investors and project owners of modular refineries in Nigeria.
It said the aim is to ensure availability of refined petroleum products within the country, monetize gas flare, reduce cost of products in the mid-term and provide employment for Nigerians. The statement quoted the Managing Director, BoI, Mr. Olukayode Pitan, to have said, “I am delighted to begin the next chapter of a long-term trading relationship with China through CEXIM.
“This agreement is set to create over 100,000 jobs in Nigeria’s oil and gas secto- a decisive move that will advance the Federal Government’s Modular Refineries and Flare Gas Recovery Programme.”
It said about ten modular refineries are at advanced stages of development in the Niger Delta, noting that this facility would ensure that more modular refineries are constructed.
The statement said the facility could be accessed through letters of credit issued for the delivery of specified modular refineries and gas processing equipment to qualified Nigerian companies establishing petrochemical facilities under the Modular Refineries and Gas Flare Recovery Programme.
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