The Federal Government of Nigeria has announced that a consortium of South Korean investors is set to establish four new refineries in Nigeria, each with a production capacity of 100,000 barrels. This development was revealed by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, during the inaugural summit organized by the Crude Oil Refineries Owners Association of Nigeria in Lagos.

Minister Lokpobiri highlighted the government’s efforts to foster a supportive environment for investors interested in building refineries, emphasizing the recent approval to invite the unnamed South Korean consortium to Nigeria. The goal is to enhance the country’s refining capacity through public-private partnerships, paving the way for both modular and large-scale refineries.

Lokpobiri stated, “We have adopted the public-private partnership model to unlock investments in the midstream and downstream segments of the oil and gas sector, aiming to develop more modular and mega refineries.”

He further mentioned that the Nigerian Upstream Petroleum Regulatory Commission has issued domestic crude supply obligation guidelines to ensure transparency and a consistent supply of feedstock to local refineries. This initiative is designed to support the growth of refineries and promote energy security in Nigeria.

The Minister also emphasized the Federal Government’s focus on deregulating the downstream sector entirely and creating frameworks that will mitigate the effects of such changes on the general population. As part of these efforts, the ministry has streamlined access to tax incentives and exemptions on refinery equipment imports, aiming to position Nigeria as Africa’s hub for petroleum refining.

Additionally, Lokpobiri disclosed plans to review the Petroleum Industry Act (PIA) to allocate a portion of the National Gas Infrastructure Fund towards developing refinery infrastructure, similar to investments in the gas sector. He called on industry bodies like the Crude Oil Refineries Owners Association of Nigeria (CORAN) to champion these initiatives.

To boost local expertise in refinery operations, the minister revealed plans to launch apprenticeship programs in partnership with existing refineries. The Federal Government is also engaging with international institutions to facilitate knowledge transfer, innovation, and technological advancements within Nigeria’s refining sector.

In a bid to curb crude oil theft and illegal refining, Lokpobiri announced the formation of an international emergency committee focused on developing home-grown solutions for refining oil within the country.

The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has provided insights into the bank’s recent decision to raise the interest rate during its latest Monetary Policy Committee (MPC) meeting. He explained that the primary objective of this move was to curb inflation.

Speaking to the Harvard Club of Nigeria in Lagos on the theme “Leadership in Challenging Times: Restoring Credibility, Building Trust, and Containing Inflation,” Cardoso stated that the decision to increase the Monetary Policy Rate (MPR) to 27.25% was a strategic move aimed at reducing the amount of money in circulation. He noted that while higher interest rates might pose challenges for borrowers, they are necessary to stabilize the economy and control inflation.

“Leadership is about making tough decisions that prioritize long-term stability over immediate comfort,” Cardoso remarked.

During his address, Cardoso emphasized the importance of focused leadership during difficult times. He pointed out that the CBN must remain committed to its primary mandate of ensuring price stability, despite the various political and economic pressures it faces. He highlighted the significance of clear communication in maintaining trust, stating that transparency has always been a guiding principle for the bank.

“Trust in a central bank is built on transparency and the willingness to take necessary actions for economic stability, even when those actions are difficult or politically sensitive,” he said.

Cardoso also discussed the bank’s decision to implement the Electronic Foreign Exchange Matching System (EFEMS). He explained that this initiative aims to increase transparency and provide better oversight of foreign exchange transactions, reinforcing the bank’s commitment to fair and efficient markets.

“Trust is the currency of central banking,” Cardoso noted. “Without public confidence, the effectiveness of our policies is compromised.”

Marking his one-year anniversary as CBN governor, Cardoso reflected on the challenges of leadership, especially when it involves making unpopular decisions for the greater good. He reiterated the bank’s focus on restoring its credibility, building trust in the financial system, and prioritizing inflation control as fundamental to Nigeria’s economic recovery.

Reflecting on his journey since assuming office, Cardoso shared that enhancing the CBN’s credibility was a priority from the outset. He mentioned that floating the naira, despite facing public criticism, was a necessary step to align the official exchange rate with market conditions, thereby reducing speculation and rebuilding trust in the currency market.

“Credibility is achieved through consistent actions. Closing the gap between the official and parallel exchange rates, although initially challenging, signaled the CBN’s commitment to transparency and robust monetary policy,” he added.

Cardoso concluded by acknowledging that while the bank has not yet fully met its inflation targets, recent data from the National Bureau of Statistics (NBS) indicate progress in the right direction, with inflation rates showing a decline in July and August 2024.