Lack of $20m lifeline may stall Amakpe Refinery

Business Day

16 May 2011

Lack of $20m lifeline may stall Amakpe Refinery .

The nation’s first private refinery may run into stormy waters if its promoters and their partner, Akwa Ibom State, do not settle their differences and raise the $20 million needed to get the project operational. Amakpe Refinery, located in Eket, Akwa Ibom and initiated over 10 years ago by two Nigerian investors based in the US with a commitment from the state government, needs a $20million lifeline to commence operations.

The state government had, after signing a Memorandum of Understanding (MoU) with the investors, invested $6.5 million, which is 25 percent of the shares, but lack of funds and differences between both parties have stalled the commencement of operations at the refinery which has gulped $38 million.

Concerned citizens of the state, led by a US-based Nigerian, Tom Ekanem, told BusinessDay that over $38 million had already been spent on the fabrication of the plant, adding that more was needed to get the project on stream.