The Federal Government has secured a US$500m facility from the Export Import Bank of China (CEXIM) through the Bank of Industry (BOI). It is for the establishment of modular refineries and Flare Gas Recovery Programme in the country.
The establishment of modular refineries is part of the federal governmentโs plan to end importation of petroleum products and to discourage illegal oil bunkering activities in the Niger Delta region.
A total of 38 operating licenses have already been granted by the federal government to establish modular refineries in the Niger Delta.
The BoI said yesterday that โas 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.
โThe aim is to ensure availability of refined petroleum products within the country, monetise gas flare, reduce cost of products in the mid-term and provide employment for Nigerians.
โTo date, 10 modular refineries are at advanced stages of development in the Niger Delta; this facility will ensure that more modular refineries are constructed.โ
The facility could 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.
