Nigeria will get its first refinery under President Muhammadu Buhari this year, according to the Integrated Oil and Gas Ltd which said on Saturday that its $116 million modular refinery would commence production before the end of 2016.
Speaking on the progress of work after conducting a tour of the refinery with journalists, the Group Managing Director of the company, Mr. Anthony Iheanacho, said in Lagos that the company has a provisional licence to commence preliminary work for a 20,000 barrel capacity modular refinery.
The refinery, as proposed, is located at the Tomaro Island Port, off Takwa Bay, Lagos.
He said he received the licence from the Department of Petroleum Resources (DPR), adding that work had commenced on the Environmental Impact Assessment (EIA) and other necessary requirements to facilitate the final approval for the refinery.
Asked about the source of funds for the refinery, he said this would be from local and foreign financial institutions just as he explained that the refinery would produce Automated Gas Oil (AGO) otherwise known as diesel, kerosene, export quality aviation fuel and fuel oil.
The refinery, he added, does not have the capacity to produce Petroleum Motor Spirit (PMS) also known as petrol.
Iheanacho said that the company was still awaiting some documents to start construction on the island and that he was sure to commence production this year.
"Refineries are very important infrastructure in the country and it will enhance the image and prestige of the country.
"If I think that I can articulate a business plan, that I can talk to the bank and they will then lend me money to build the refinery, why will I not do it? I do not want anybody to be deceived or fooled by fake or funny stories," he said while appealing to the Federal Government to support indigenous oil companies struggling to grow the oil and gas sector.
He further pleaded for funding of local companies adding: " We are in absolute support of growing indigenous capacity in every facet of our oil and gas industry.
"This is because the local companies are paying their taxes, reinvesting their capital and creating enormous job opportunities for the larger community."
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