Investors in Nigeria’s modular refinery sector have initiated discussions with the African Export-Import Bank (Afreximbank) to access part of the $18 billion fund aimed at developing refineries across Africa. This move follows the successful financial support provided by Afreximbank to the $19 billion Dangote Petroleum Refinery, which now produces refined petroleum products for both domestic use and export.
Two modular refineries, Clairgold Refinery and Shinjin Petro Chemicals, have already held talks with Afreximbank officials regarding funding for their plants in Nigeria. Despite the positive engagement, modular refiners expressed concerns about securing feedstock, a crucial guarantee required by the financial institution. Under the Crude Oil Refinery Owners Association of Nigeria (CORAN), these operators lauded Afreximbank’s support of the Dangote Refinery and are hopeful for similar backing.
Afreximbank’s pledge of $18 billion to fund refinery projects was highlighted during its 2024 annual meetings in Nassau, The Bahamas. The bank’s strategic objective is to ensure that 50 percent of Africa’s crude oil production is refined within the continent. Benedict Oramah, Afreximbank’s President, emphasized this goal, aiming to refine half of Africa’s five million barrels of daily crude oil production within African refineries.
Source: Punch