The development could ease the supply of refined petroleum
products in the country.
The integrated refinery and petrochemical complex in the
Lekki Free Zone near Lagos, Nigeria, will produce Euro-V quality gasoline and
diesel, as well as jet fuel and polypropylene, and will likely generate 4,000
direct and 145,000 indirect jobs.
It is expected to double Nigeria’s refining capacity and
help meet the increasing demand for refined petroleum products while providing
cost and foreign exchange savings. It is estimated to have an annual refining
capacity of 10.4 million tonnes of petrol.
According to the World Bank, the refinery is expected to
boost Nigeria’s external earnings by drastically reducing fuel imports,
contributing to the regional supply of petroleum products.
The bulk of the crude for the refinery operations is
expected to come from Nigeria, given that the Nigerian National Petroleum
Company Limited (NNPC) holds a 20 percent stake in the company on behalf of the
federation, but the declining crude output would present a challenge.
The NNPC says it would supply half of the crude required by
the plant, and if this is sold at market price, it would be impractical to
continue paying subsidies.