Nigeria, China seal R171bn refinery deal

2010-05-14 15:28

Nigeria and a Chinese state firm have signed a $23 billion (about

R171 billion) deal to build three refineries and a petrochemical complex in one

of Africa’s biggest tie-ups with China.

Officials said today the deal, which was sealed yesterday in Abuja,

Nigeria, is between Nigerian National Petroleum Corporation (NNPC) and China

State Construction Engineering Corporation Limited.

China is already the number one investor in Africa. Its investments

range from oil in Algeria to mines in Zambia.

Nigeria is in turn Africa’s leading oil producer but it has been

importing refined petroleum products to meet local demand for more than a


The two corporations will jointly seek financing and credits from

the China Export & Credit Insurance Corporation and a consortium of Chinese

banks, an NNPC statement said.

“NNPC aims to accelerate the construction of new refineries in

Nigeria to stem the flood of imported refined products into the country,

currently estimated at $10 billion,” the statement said.

The new refineries are expected to add about 750 000 barrels-a-day

capacity in Nigeria and position NNPC in the international trading of refined

petroleum products.

Nigeria’s four refineries, with a total capacity of 445 000 barrels

a day, are using less than 30% of their installed capacity, according to

official figures.

Corruption and poor maintenance have undermined their performance.

The construction of the new refineries “will reinforce the ongoing

oil and gas reforms in Nigeria” as envisaged in legislation which has been

before the Nigerian parliament for almost a year and imminent deregulation of

the downstream sector of the country’s oil industry, the NNPC said.


Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.