The Bank of Industry (BoI), and the Export-Import Bank of China (CEXIM), have signed a Memorandum of Understanding (MoU), to provide a credit line of up to $500 million towards the establishment of modular refineries, and Flare Gas Recovery Programmes in the country.Speaking at the signing ceremony in Beijing, the Managing Director/Chief Exevcutive, BoI, Olukayode Pitan, emphasized the job creation potential of this partnership.

“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,” he added.

As part of the MoU between BOI and CEXIM, 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 aim is to ensure availability of refined petroleum products within the country, monesze gas flare, reduce cost of products in the mid-term, and provide employment for Nigerians.

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.
To date, a total of 38 operating licences have already been granted by the Federal Government to establish modular refineries in the Niger Delta, while 10 are already at advanced stages of development. This facility will therefore ensure that more modular refineries are constructed, and can be accessed via letters of credit issued for the delivery of specified modular refineries and gas processing equipment to qualified Nigerian companies establishing petrochemical plants under the Modular Refineries and Gas Flare Recovery Programme.