Consortium of Chinese banks pledge loan for construction of three oil refineries in Bayelsa, Kogi and Lagos states and one fuel complex/petrochemical plant

On May 13, 2010 China State Construction and Engineering Corporation signed an MoU with Nigerian National Petroleum Corporation (NNPC) to construct three oil refineries located in Bayelsa, Kogi and Lagos states and one fuel complex/petrochemical plant in Nigeria for a total cost of $23 billion, according to a 2017 Nigerian Bond Prospectus. China Export Credit Insurance Corporation (SINOSURE) and a consortium of Chinese banks, led by the Industrial and Commercial Bank of China, will finance 80% of the project through loan financing (a combination of supplier's credits guaranteed by SINOSURE, and loans from a consortium of Chinese banks) and NNPC will finance the remaining 20%. Available sources confirm that the project is still not underway. As of 2015 the project was stalled and has yet to be implemented. A November 2018 bond prospectus states that the three greenfield refinery projects have since been put on hold. Scooper News suggests that after the project failed to meet a 2015 deadline, there has been a search for new partners. In May 2010, a memorandum of understanding was signed in which China agreed to construct an 8 billion USD oil refinery in Nigeria's Lekki Fre Trade Zone within the 23 billion USD investment (one of the three greenfield projects). Chinese investors are to hold a 25% stake in this project.

Number of official sources

2

Number of total sources

12