Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Nigeria signs $4.5bn deal with US firm

03 July 2012, 13:58

Abuja - Nigeria on Monday signed a Memorandum of Understanding with an American energy firm to build six oil refineries, in a project worth $4.5bn, a government statement said.

Nigeria is Africa's largest oil producer but its refining infrastructure has largely crumbled, turning the country into a net importer, which often pays high prices for its own crude that has been processed abroad.

The deal between US-based Vulcan Energy, the Nigerian government and a local firm, aims to build six refineries with a combined capacity of 180 000 barrels per day, Nigeria's trade and investment ministry said in a statement, which also listed the 697.5 billion naira ($4.5bn) price tag.

Two of the refineries are to be completed within a year, according to the terms of the MoU.

"This is the beginning of changing our old paradigm from exporting just raw materials and exporting jobs to the Western countries," Trade and Investment Minister Olusegun Aganga said in the statement.

Nigeria produces around 2 million barrels a day of crude, making it the world's eighth largest producer, but its petroleum industry has for years been riddled with corruption and poor management.

Last week, President Goodluck Jonathan fired the chief executive of the state oil firm NNPC, a move his office said was designed to boost transparency and accountability.

Vulcan's vice president, Jim Mansfield, said the MoU highlighted Nigeria's attractiveness as an investment destination.

"The funding for the project will be a non-Nigeria source and is from investors who firmly believe that Nigeria is a good place to do business," he was quoted in the statement as saying.

Houston-based Vulcan currently operates in several US states as well as Canada.



Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
Cyril Mike Odhiz
Kenyans furious on young lady aft...

A young Kenyan woman is the talk of town after she posted a photo with her elderly lover after a round of steamy sex, or so the photo suggested.  Read more...

Submitted by
Kiplangat langat
Uhuru could be a one term Presid...

Bomet governor Isaac Ruto has said that President Uhuru Kenyatta could be a one term President if he fails to increase allocations to the counties. Read more...

Submitted by
Mody Sammy
35 year old farmer a new milliona...

A 35 year old farmer from Mpeketoni Lamu county has become the latest millionaire in town as she became winner in the ongoing ‘Shinda Mamili na Story Ibambe’. Read more...

Submitted by
Shakila Alivitsa
Leave your past relationship bagg...

Leave your past relationship baggage at the door when you start a new relationship. Read more...

Submitted by
Shakila Alivitsa
Advice from a young married Kenya...

I was just going to get water in the office kitchen and thought a simple hi was fine until I ended up in an hour long conversation with someone. Read more...

Submitted by
Shakila Alivitsa
Helping you find the type of man ...

To put it simply, you can’t go looking for fish in a meat market; you have to go to a fish market. Read more...