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China-Africa Trade Information Service
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Nigeria last week made some progress on its talks with Niger Republic to build a brand-new 150,000 barrels per day (bd) processing capacity refinery in a government-to-government inspired initiative.
Though planned to be built in a border town in Katsina between both countries, the refinery which would come with an associated crude oil pipeline linking it to oil fields in Niger.
It is expected to be funded with private sector finance and managed as well by private investors though championed by the governments of both countries. It also came at a time Nigeria has yet to get its four refineries to work at full capacities again despite reports of huge funds sunk in to revive them in the past.
To get kicking on the project though, both countries met in Abuja and set up two teams to be jointly managed by officials from the countries.
Inaugurated by President Muhammadu Buhari, alongside the President of Niger, Mahamadou Issoufou, the task teams would by December 2018, come up with a detailed project implementation roadmap.
The roadmap would contain amongst other things, bankable feasibility studies for the refinery and associated pipeline project; optimal project site and pipeline routes; security plan; as well as selected consortia of investors for the projects.
It will in a nutshell tell both countries if it would be prudent to build the refinery.
Essentially headed by Nigeria’s Minister of State for Petroleum Resource, Dr. Ibe Kachikwu and his Nigerian counterpart, Foumakoye Gado, the teams would be expected to submit their report after which the implementation of the project could commence and possibly last over a two-year period.
Though no estimate as to how much the project would cost, has been made, it is however expected that financial commitments running into billions of dollars would be needed and from private sector financiers.
“Nigeria and Niger have excellent relations for several decades, as neighbours sharing a long border with common cultural and historical ties. Nigeria sees this cooperation on crude oil export from the Republic of Niger and construction of refinery facilities in Katsina state as a win – win for both nations,” said Buhari.
