(Ecofin Agency) - Nigeria has granted 30 construction licences to private refineries in order to cut the country’s reliance on imports.

“More than 30 licenses for refineries have been granted and private refineries will be allowed to build near the state-run units so they can benefit from the available infrastructure. In the medium term we will be able to get cheaper pump-price oil because we will be importing far less refined petroleum,” Vice President of Nigeria Yemi Osinbajo told Energy Mix report.

Nigeria which has about 180 million citizens subsidizes fuel and more than 70% of its supply is imported. While some refineries in Warri and Kaduna have been closed, two out of the four state-owned oil refineries with a joint capacity of 210,000 bbls/d in the southern part of Port Harcourt currently produce at 67% of capacity.