Ondo State has taken a major step toward industrial transformation as Backbone Infrastructure Ltd (BINL) confirmed funding commitments exceeding $50 billion for the construction of a world-class refinery and the Sunshine Free Trade Zone in Ilaje Local Government Area.
Key Highlights:
- $50bn funding secured for 500,000 barrels-per-day refinery and Sunshine Free Trade Zone
- Partnership between Backbone Infrastructure Ltd and Canada’s NEFEX Holdings
- Project to transform Ondo into a major refining and export hub in West Africa
- Thousands of jobs expected as Nigeria pushes to reduce fuel import dependence
The massive investment, facilitated through a joint venture between BINL and NEFEX Holdings Limited of Canada, represents one of the largest private sector commitments in Nigeria’s downstream oil and gas industry.
According to a statement by the company on Monday, the funding follows a Memorandum of Understanding signed in July between BINL and the Ondo State Government through the state’s Investment Promotion Agency. The initiative is expected to position Ondo as a key refining and export hub within the Niger Delta corridor.
A high-powered delegation from BINL, led by its Chairman and former Senate President, Senator Ken Nnamani, is scheduled to visit Akure today for strategic meetings with Governor Lucky Aiyedatiwa, site inspections, and stakeholder engagements, including a royal audience with the Olugbo of Ugbo Kingdom, Oba Obateru Akinrutan.
BINL’s Vice President for Corporate Services, Wale Adekola, said the partnership with NEFEX Petroline; an international engineering, construction, and energy infrastructure firm, will accelerate technical and financial groundwork to kick-start construction.
“With operations across North America, Europe, and the Middle East, NEFEX brings global financial partnerships and technical depth that will fast-track our refinery development,” Adekola said.
He added that the BINL-NEFEX collaboration would also work closely with the Nigerian National Petroleum Company Limited to ensure integration with the nation’s oil value chain.
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The refinery, when completed, is expected to meet domestic petroleum needs, export refined products, and provide feedstock for local industries. It will feature extensive storage facilities, terminals, and a road network to support large-scale operations.
Similarly, the 1,471-hectare Sunshine Free Trade Zone will host industrial clusters, logistics centers, and residential estates, making Ondo a growing hub for manufacturing and trade in Southwest Nigeria.
Governor Aiyedatiwa, praised for his proactive investment policies, has continued to attract credible investors to the state. BINL also pledged to invest in education, skill development, and community infrastructure as part of its corporate social responsibility plan.
The $50bn refinery and free trade zone project is expected to boost local employment, conserve foreign exchange, and strengthen Nigeria’s push toward self-sufficiency in petroleum refining, mirroring the success of the Dangote Refinery model.
With this development, Ondo State stands poised to emerge as a major industrial powerhouse in the coming decade, driving Nigeria’s energy and economic growth.
