Business
Lagos, Chinese Investors Sign $8bn Refinery Deal
A deal to establish a refinery capable of producing 300,000 barrels of crude oil per day has been sealed between the Lagos State Government, the Nigerian National Petroleum Corporation (NNPC) and a consortium of Chinese investors known as China State Construction Engineering Corporation Limited.
The deal was revealed Monday during the joint visit of the NNPC, the Chinese company, officers of the Lagos State Government at the governor’s Office in Alausa, Ikeja.
It was stated that the refinery would cost a sum of $8 billion, which will be co-funded by the Lagos State Government, NNPC and the Chinese company, under an arrangement of public private partnership (PPP). The refinery will be sited within the Lekki Free Trade Zone (LFTZ).
According to reports, the consortium of Chinese investors “will take up 80 percent of the funding leaving the remaining 20 per cent to the NNPC. Lagos State will provide such necessary infrastructure as road network, electricity in addition to land.”
In his address, NNPC Group Executive Director (Engineering & Technology), Mr. Billy Agha, said the discussion between the Lagos State Government and NNPC started two years ago aimed at partnering with the state government in establishing the Lekki Greenfield Refinery and Hydrocarbon Industrial Park Project.
Agha referred to how the state-owned oil giant and the consortium “executed a memorandum of understanding (MoU) to jointly seek for debt financing for the funding and construction three Greenfield Refineries and one petrochemical plant in Nigeria to the mutual benefit of both parties.”
According to him, China State, the sixth largest engineering firm in the world, has pledged not to only assist in procuring funding on competitive terms, but also ensure that bona fide Chinese investors take up at least, 25 per cent of equity holding in the project.
He added that the refinery “Is expected to produce about 500,000 metric tons of liquefied petroleum gas (LPG) per annum. The availability of such a volume of LPG is expected to trigger the formal switch of domestic household fuel in Lagos from firewood, charcoal and kerosene to the liquefied petroleum gas.
“The project will offer job opportunities for up to 5,000 construction workers, and an estimated 2,000 workers to run the industrial complex. Other multiplier effects will include the generation of local businesses for auxiliary services including the suppliers of goods and services of all types to the hydrocarbon complex,” he said.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.