The Federal Government of Nigeria has announced that a consortium of South Korean investors is set to establish four new refineries in various locations across the country. Each refinery will have a production capacity of 100,000 barrels per day, marking a significant step toward bolstering Nigeria’s energy infrastructure.
Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), made this announcement on Tuesday during the inaugural summit of the Crude Oil Refineries Owners Association of Nigeria (CORAN) in Lagos. Lokpobiri stated that the government is actively fostering a favorable environment for private investors to build refineries and expand the nation’s energy sector.
“We have recently granted approval to a consortium of investors from South Korea, who plan to build four 100,000-barrel refineries in different locations across Nigeria,” Lokpobiri revealed. Although he did not disclose the name of the consortium, he emphasized that this move is part of the government’s broader effort to attract foreign investments into the oil and gas sector.
The minister outlined that the government has adopted a public-private partnership (PPP) model to unlock investments in both the midstream and downstream sectors of the industry. This initiative aims to encourage the development of modular and mega refineries in the country, thereby increasing domestic refining capacity and reducing reliance on imported petroleum products.
Lokpobiri also highlighted that the Nigerian Upstream Petroleum Regulatory Commission has developed domestic crude supply obligation guidelines. These guidelines aim to ensure transparency in crude supply and guarantee access to feedstock for local refineries. He added that the government is working to support refinery owners by providing special concessions to secure a steady supply of crude for their operations.
In addition, the minister noted that the Federal Government is fully committed to the complete deregulation of the downstream sector, ensuring that the right frameworks are in place to mitigate the potential impact of such measures on the less privileged. He also spoke about the government’s efforts to facilitate access to tax exemptions and other benefits on refinery equipment imports, with the ultimate goal of making Nigeria self-sufficient in petroleum production and positioning the country as Africa’s refining hub.
Lokpobiri discussed plans to review the Petroleum Industry Act (PIA) to allow a portion of the National Gas Infrastructure Fund—currently sourced from in-country petroleum sales—to support infrastructural development in the refinery sector. He further stated that the government is prioritizing international partnerships for knowledge transfer and skill development, with plans to launch an apprenticeship program in collaboration with existing refineries.
Finally, Lokpobiri addressed the issue of crude oil theft and illegal refining. He revealed that the government has established an international emergency committee to develop homegrown solutions for promoting in-country refining and curbing illegal activities in the oil sector.
This ambitious refinery expansion plan is expected to improve Nigeria’s energy security, create jobs, and enhance the country’s capacity to meet its domestic and regional petroleum product demands.
