A sugar refinery, owned by International Trans Oil Energy Inc., the parent company of Confluence Sugar Nigeria Limited, has taken off in Kogi State.
The 32,000-hectare sugar plantation has an in-built 10,000 metric tonnes sugar refinery.
The company plans to establish new firms in Lagos, Ogun or Ondoand and a 100,000 bpd oil refinery in two years.
Both projects are to cost about $2.5 billion; the oil refinery $1.7 billion and sugar refinery $530 million.
President of International Trans Oil Nig. Ltd Mr. Hicham Makkaoui said the company received the approval of the United States Export Import Bank for $500 million equipment guaranty to begin operations on the oil refinery. Sterling Finance Canada has also structured $2 billion for both sugar and oil refineries.
The company has also secured the interest of foreign partners for both projects, a United States-based Engineering firm in Houston Texas, S&B Infrastructure and others.
“The sugar company will begin with 10,000 metric tonnes in 2018, rising to 14,000 metric tonnes a year after. About 2,000 workers will be employed in the refinery.
Applauding the Federal Government, Makkaoui said discussions were on with Lagos, Ogun and Ondo states on the location of the 100,000 bpd oil refinery.
“’It is actually in response to the deregulation of the oil sector, which is encouraging investors. It is expected that this oil & gas refinery will increase production of refined products locally and create employment for Nigerians ‘’, he stressed.
Makkaoui acknowledged the support of Fidelity and Unity banks in supporting investors in the sector but wished many local banks could key into this.