The Bank of Industry (BoI), and the Export-Import Bank of China (CEXIM), have signed a Memorandum of Understanding (MoU), to provide a $500 million credit line for the establishment of modular refineries, and Flare Gas Recovery Programmes in the country.
Speaking at the signing ceremony in Beijing, BoI’s Managing Director, Olukayode Pitan, emphasized the job creation potential of this partnership.
He enthused: “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.”
The MoU between BOI and CEXIM provides that the facility will be utilised to finance the purchase of equipment and machinery from China by investors and project owners of modular refineries in Nigeria.
The projects are intended 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.
In fact, the establishment of modular refineries is part of the government’s plan to end importation of petroleum products, and discourage illegal oil bunkering activities in the Niger Delta region.
So far, in order to achieve the objectives of the government’s plan, 38 operating licences have already been granted to investors to establish modular refineries in the Niger Delta, while 10 are already at advanced stages of development.
Industry analysts believe the $500 million facility will ensure that more modular refineries are constructed.
The fund can be accessed through Letters of Credit issued for the delivery of specified modular refineries and gas processing equipment to qualified Nigerian companies establishing petrochemical plants under the Federal Government’s Modular Refineries and Gas Flare Recovery Programme.
