China to build $8b oil refinery in Nigeria

A deal has been signed between China and Nigeria for the Asian country to build an $ 8 billion oil refinery near the city of Lagos in Nigeria. This is just one of China's huge investments in Africa.

According to the Voice of America, Nigeria’s Lagos state Governor made the made the announcement Tuesday 5 July 2010, saying that 80 percent of the money is coming from China and the other 20 percent from the Nigerian National Petroleum Corporation.

This new refinery, reports say, is expected to produce some 300,000 barrels of oil a day in the Lekki Free Trade Zone in Lagos state.

The Lagos refinery is said to be part of a larger deal to build three new refineries and a petrochemical complex in Nigeria. The new projects are expected to increase the country's production of refined oil from 450,000 barrels to 750,000 barrels per day.

Nigeria is one of the world's biggest oil producers, but its current refineries operate far below capacity because of aging equipment and poor maintenance.