Modular Refineries: FG secures N179.9BN loan from China

*Agreement to create 100,000 jobs

The Federal Government has secured a $500 million (about N179.9 billion) facility from the Export Import Bank of China (CEXIM) through the Bank of Industry (BOI) for the establishment of modular refineries and the Flare Gas Recovery Programme in Nigeria.
Speaking at the signing ceremony in Beijing, BOI’s Managing Director, Mr Olukayode Pitan, emphasised the job creation potential of the partnership, according to Daily Trust.
He 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 & Gas sector – a decisive move that will advance the Federal Government’s Modular Refineries and Flare Gas Recovery Programme,” he said. 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 BOI boss 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. He said 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. A total of 38 operating licenses have already been granted by the Federal Government to establish modular refineries in the Niger Delta.