N62.6bn Investment Funds Stall Completion Of 20,000bpn Modular Refinery

Harboursandport.com: Lagos - The lack of N62.6 billion ($136 million) is stalling the completion of a 20,000 bpd modular refinery under construction in Lagos.

The refinery project located in Tomaro Island, is being promoted by the former Minister of Transportation and foremost shipping operator, Emmanuel Ihenacho. While speaking with Vanguard in his office in Lagos, Ihenacho explained that the refinery project has been stalled because of lack of funds. He said though he could not quantify the actual amount so far spent on the project, he noted that most of the funds that they have gotten from other aspects of their operations have been channeled to the refinery project.

According to him, “We are looking at a total investment sum in the region of about $136m. For a 20, 000 bpd modular refinery, it is somehow high. The total amount you invest in the project depends on the location, the location that was planned for the refinery is on an island, and it does not have any docking facilities.

“So, we are constrained to plan for building a dock and to also build a small port to service the refinery.”

On the benefit of the project to the nation's economy, he said “We do not need to look at only the refinery project, but to look at the number of investment proposals that we need for where the refinery would be built.

“The refinery will be built on an island called Tomaro, it’s an island not too far from here. The refinery will be built on the eastern part of the island, we also took in the requirement for us to have plans to build a container terminal also on that island which will basically create a lot of jobs.

“It will create an opportunity for people to acquire technology which would enhance the operation of our economy when all of these things are realised.

“It is a 100 per cent Nigerian project which is also funded by us 100 per cent at the moment through our retained earnings and we hope to be able to attract support funding from some of the multi-lateral banking institutions.

“It is difficult to ascertain that at the moment as I have been sinking every cent that I have into this project, we have had to acquire the property, to commence the preparation to kickstart the project,” he noted.