Niger and Nigeria sign MoU for oil refinery to boost economic development
The Nigerien and Nigerian governments have signed a Memorandum of Understanding (MoU) to construct a hydrocarbon pipeline and a petroleum refinery, valued at US$2bn.
The pipeline will travel between Niger and Nigeria’s Katsina State, located on the nation’s northern border.
Due to the state’s location, the governments can save costs on the construction of the pipeline as it will span across a shorter distance.
The agreed refinery will have a capacity to process up to between 100,000 and 150,000 barrels of Nigerien oil per day.
The MoU was signed by the two nations’ Energy Ministers, and witnessed by the President of Nigeria, Muhammadu Buhari, and the President of the Republic of Niger, Mahamadou Issoufou.
The nations aim that the agreement will boost cross-border economic development.
During the signing ceremony, a steering committee and a team led by Rabiu Suleiman were inaugurated to develop strategy for the projects.
The committees aim to establish a roadmap and guidelines for the refinery and pipeline, including feasibility studies, pipeline routes and details, and security plans.
It is anticipated the duration of the projects’ planning and execution will take between three and four years.
“Nigeria sees this cooperation on crude oil export from the Republic of Niger and construction of refinery facilities in Katsina State as a ‘win–win’ for both nations,” stated President Buhari following the ceremony.