The Edo State Government has approved a N700 million, as initial investment for the multi-million Naira modular refinery and petrochemical company to be sited in Benin City, the state capital, as part of its sustain drive to boost industrial activities in the state.
At its meeting last Friday, the state’s Executive Council (EXCO) approved the release of N700 million as redeemable preference shares (investment) in the Edo Refinery and Petrochemical Company Limited.
Apart from the modular refinery, other projects planned for execution by the state government in partnership with some Chinese investors, are the Benin River Port in Gelegele, the Benin Industrial Park.
To facilitate the foreign investors’ commitment to the projects through required investment agreements, the State Governor, Mr. Godwin Obaseki, is among top political leaders billed to join President Muhammadu Buhari on an investment tour of China within the next few weeks.
Already, the Edo State projects had been listed in the agenda of issues to be discussed by the President during his visit to China.
An official source in the know of what issues are slated for discussion with Chinese investors during the trip, projected that the Edo State projects which Chinese investors had expressed their commitment to, would be finalized during the visit.
The source confirmed that Governor Obaseki visited the Chinese Embassy during the week for more consultations with officials preparatory to the Presidential investment tour of the Asian country.
Speaking on the refinery project, the Governor said that “the company will be involved in the production of petroleum and petrochemical products and other products, will boost Nigeria’s the local refining capacity and create jobs.
He explained further that the venture “will create legitimate employment opportunities thereby reducing poverty and providing job opportunities for teeming youth in the communities and facilitate the establishment of a fabrication yard as proposed by the promoters, thereby creating basis for expertise, professionalism and further training in oil and gas industry.”
The commencement of the of the Edo Refinery and Petrochemical Company’s project was sequel to series of groundwork by the state government which culminated in the setting up of Edo Investment Scheme Limited, a Special Purpose Vehicle (SPV).
The SPV is to hold N2 billion investment funds in which the Ministry of Finance Incorporation (MOFI) and the Edo State Oil and Gas Producing Areas Development Commission (EDSOGPADEC) which are to hold shares of 20 percent and 80 percent of its equities respectively.
According to the government, the SPV will facilitate the state’s investment in various initiatives across the oil and gas services, petroleum exploration, drilling and filling station, sales and supply of gas, oil agro allied products, petroleum and petrochemical products and other related businesses.
In its transaction design, the investment funds will be fully repaid within three years after the execution of the projects, apart from the interest that will accrue to the state within the interim.
