Modular Refinery: BoI, China’s Exim Bank Sign $500m MoU

Kayode Pitan, CEO, BOI


A $500 million modular refineries financing support agreement has been signed by the Bank of Industry (BoI), the Development Finance Institution (DFI) and the Export-Import Bank of China (CEXIM).

The Memorandum of Understanding (MoU) was signed in China, BoI’s Managing Director/Chief Executive Officer Olukayode Pitan said yesterday.

The partnership has an enormous job-creation potential, Pitan said, adding: “This is a partnership that will provide a credit line of up to $500 million towards the establishment of modular refineries and flare gas recovery programmes in the country.’’

The BoI chief, who signed the MoU on behalf of BoI in Beijing, China, said he was delighted to be part of the beginning of a new development agenda, describing the partnership as the next chapter of a long-term trading relationship with China through CEXIM.

He said: “This agreement is set to create over 100,000 jobs in Nigeria’s oil and gas sector. It is a decisive move that will advance Federal Government’s Modular Refineries and Flare Gas Recovery Programme.”

Pitan said as part of the MoU between BoI and CEXIM, the facility would be utilised to finance the purchase of equipment and machinery.

He said such purchases would be 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, monetise gas flare, reduce cost of products in the mid-term and provide employment for Nigerians,’’ he said.