In order to establish modular refineries and implement the Flare Gas Recovery Programme, the Federal Government has secured a $500 million loan facility from the Export Import Bank of China (CEXIM), through the Bank of Industry (BoI).
The credit facility which is programmed to facilitate growth in Nigeria’s oil and gas sector, according to the Chief Executive of BoI, Olukayode Pitan, will create over 100,000 jobs in the Nigerian energy sector – a decisive move that will advance the Federal Government’s Modular Refineries and Flare Gas Recovery Programme.
Highlighted potentials of the credit facility
The establishment of modular refineries is part of the Federal Government’s strategy for ending importation of petroleum products and discouraging illegal oil bunkering, especially in the Niger Delta.
Thus, the credit facility reinforced the Nigerian Government’s determination to stimulate economic growth, drive investment, jobs for her citizen.
“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 and gas sector—a decisive move that will advance the Federal Government’s Modular Refineries and Flare Gas Recovery Programme.” – Pitan
The loan is to ensure availability of refined petroleum products within the country, monetise gas flare, reduce cost of products in the mid-term and provide employment for Nigerians.
In the Memorandum of Understanding (MoU) between the BoI and CEXIM, it’s stipulated that the loan facility will be utilised to finance the purchase of equipment and machinery from China by investors and project owners of modular refineries in the country.
Recall that the Minister of State for Petroleum, Dr. Ibe Kachikwu had recently at the commissioning of Petrolex’s mega oil city in Ibefun, Ogun State, assured Nigerians of the Federal Government’s determination to end the importation of refined oil into the country by 2019.