AfricaNews Monitoring Team Credit: BBC
The Nigerian National Petroleum Corporation and China State Construction Engineering Corporation (CSCEC) have signed a $23bn oil deal. The deal will ensure that the two will jointly seek financing and credits from Chinese authorities and banks to build three refineries and a fuel complex in Nigeria.
The project would add 750,000 barrels per day of extra refining capacity.
NNPC hopes the construction of new refineries will stem the flood of imported refined products into Nigeria.
Nigeria is the world's 12th-largest oil producer and the eighth-largest oil exporter.
But the country imports roughly 85% of its fuel needs because of the disrepair and mismanagement of its four state-owned refineries.
"We are about to deepen the existing technical and commercial relationships between China and Nigeria through the signing of a memorandum of understanding," said Shehu Ladan, head of NNPC, according to BBC.
The three refineries will be built in Bayelsa, Kogi and Lagos states, while a location has to be confirmed for the petrochemicals complex.
The Nigerian government has said that foreign companies must invest in developing Nigeria's infrastructure and economy first, before they can benefit from its oil and gas exports.
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