The 200,000 barrels per day BUA Petroleum Refinery will commence full commercial operation in 2024, after a groundbreaking ceremony billed for May this year, all things being equal.
Giving graphic details on the economics of Nigeria’s second-largest petroleum refining complex in Lagos at the weekend, Executive Chairman of BUA Group, Abdul Samad Rabiu, said the project was initiated against the backdrop of the huge amount of foreign exchange the nation spends importing refined petroleum products into the country.
Rabiu who defended the sustainability of his Group’s investment in the various sectors of the economy said the refinery project will meet the government’s economic diversification agenda in the long run, as new fuel standards continue to evolve in line with the climate crisis.
He said the project is being constructed with the best of technology from Axens of France rated as one of the best in the world in the petroleum refining industry and would enable the nation to save huge amounts of foreign exchange in addition to creating thousands of jobs for the citizens.
“ Nigeria consumes over 50million liters of fuel daily and over 90 of that is imported with about 35 percent of the country’s scarce foreign currency spent on imported products. This, coupled with low crude prices due to low demand arising from the
Coronavirus pandemic offers us huge opportunity to invest in projects that would help us conserve more funds, leveraging the low cost technology being deployed by Axens of France offering us far lower cost than what it should be.” He said
Rabiu further noted that the refinery’s complete marine infrastructure and nearness to its feedstock will enable it save more on haulage, as it targets local, regional and other landlocked markets in Africa, bolstered by its unique location and opportunities emerging from the AfCFTA.
According to him, the economics of the project are a ‘no-brainer’.
Contract for the construction of the refinery was signed in Paris between BUA Group Chairman Abdulsamad Rabiu, and the CEO of Axens, Jean Sentenac, in a ceremony presided over by France’s Minister Delegate for Foreign Trade and Economic Attractiveness, Franck Riester.