The Nigeria National Petroleum Corporation (NNPC) and China State Construction Engineering Corporation (CSCEC) , Sunday signed a $23bn (£16bn; 18bn euros) deal to build 3 new refineries and a petrochemical complex in Nigeria.
The project is expected to add 750,000 barrels per day of extra refining capacity as the NNPC hopes the construction of the new refineries will stem the flood of imported refined products into Nigeria.
Nigeria is the world’s 12th-largest oil producer and the eighth-largest oil exporter and it still imports roughly 85% of its fuel needs because of the disrepair and mismanagement of its four state-owned refineries.
According to the spokesperson of the NNPC, Shehu Ladan,”We are about to deepen the existing technical and commercial relationships between China and Nigeria through the signing of a memorandum of understanding,”
The three refineries will be built in Bayelsa, Kogi and Lagos states, while a location has to be confirmed for the petrochemicals complex.
The Nigerian government has said that foreign companies must invest in developing Nigeria’s infrastructure and economy first, before they can benefit from its oil and gas exports.