South Korean Investors to Build 4 Refineries in Nigeria, Boosting Economy by $50bn

Nigeria is set to welcome a consortium of South Korean investors who plan to construct four refineries, each with a capacity of 100,000 barrels.

This ambitious project was announced by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, during a summit organized by the Crude Oil Refinery-owners Association of Nigeria in Lagos on October 9, 2024.

The initiative involves setting up these refineries across four strategic locations within Nigeria. As Lokpobiri stated, "We encourage investors to build limited refineries by providing an open environment."

This approach aims to attract substantial foreign investment and enhance Nigeria's oil production capabilities.

This development aligns with Nigeria's broader strategy to rejuvenate its oil and gas industry. The government anticipates attracting $50 billion in investments by the end of 2024.

Lokpobiri emphasized that part of his mandate includes unlocking numerous oil wells that were previously drilled but remain inactive, thereby boosting production levels.

The collaboration with South Korean investors is expected to significantly reduce Nigeria's dependency on imported fuels. It follows the recent commencement of fuel distribution by the Dangote Refinery in September 2024, where the Nigerian National Petroleum Company Limited (NNPC) acts as the sole off-taker.

These efforts are indicative of Nigeria's commitment to becoming a major player in the global oil market.