Skip to content
AidData logo

Overview

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

Commitments (Constant USD, 2023)$29,581,184,881
Commitment Year•2010Country of Activity•NigeriaDirect Recipient Country of Incorporation•NigeriaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2010

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

State-owned companies

  • Nigerian National Petroleum Corporation

Implementing agencies

State-owned companies

  • China State Construction Engineering Corporation (CSCEC)
  • Nigerian National Petroleum Corporation

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

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

Interest type•Unknown

Narrative

Full Description

Project narrative

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.