The Nigerian government has secured a $500 million loan facility from the Export Import Bank of China (CEXIM), through the Bank of Industry (BoI), to establish modular refineries and implement the Flare Gas Recovery Programme in the country.
Speaking at the signing ceremony in Beijing, China, the Chief Executive of BoI, Mr. Olukayode Pitan, highlighted the job creation potentials of the 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 and gas sector—a decisive move that will advance the Federal Government’s Modular Refineries and Flare Gas Recovery Programme,” he said.
According to him, the purpose of the loan was 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.
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 region.