The Nigerian government is moving the goal post on illegal crude refining.

By the end of 2017, illegal crude refining in Nigeria will become legit.

The government will even supply them with crude at a reasonable price.

This wis in fulfillment of the demands by community leaders to ensure lasting peace in the Niger Delta region – Nigeria’s oil hub.

The presidency made this known on Thursday, after the Niger Delta leaders threatened on Monday, to pull out of peace talks with the government unless their demands were met by November 1.

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"The Federal Government has started the process of replacing illegal refineries in the region with modular ones," the presidency said in a statement as Acting President Yemi Osinbajo met Niger Delta community leaders in Abuja.

Each of the Niger Delta states would receive two modular refineries to start up in the fourth quarter, the statement said.

The community leaders welcomed the outcome of the meeting.

"The meeting was excellent. We met with Mr Acting President and the discussion was very honest, truthful, forthright. We are very, very satisfied. No more ultimatum," Edwin Clark, head of the community leaders, told reporters.

The government has been in talks with community leaders since last year to end militant attacks on oil production facilities, which cut Nigeria’s output by 700,000 barrels a day for several months last year.