FG secures $500mn from Bank of China for modular refineries

The Federal Government has recorded another milestone in its drive to stimulate economic growth, drive investments and provide jobs for Nigerians, as it secured a US$500m facility from Export Import Bank of China (CHEXIM) through Bank of Industry (BOI) for the establishment of modular refineries and Flare Gas Recovery Programme in the country.

The establishment of modular refineries is part of the FG’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 have already been granted by the Federal Government to establish modular refineries in the Niger Delta.

As part of the MoU between BOI and CEXIM, the facility will be utilized to finance the purchase of equipment and machinery from China by investors and project owners of modular refineries in Nigeria.
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.

To date, 10 modular refineries are at advanced stages of development in the Niger Delta, this facility will ensure that more modular refineries are constructed.

The facility can be accessed via 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