The funding package, regarded as one of the largest private-sector investment commitments in Nigeria’s downstream oil and gas sector, was facilitated through a joint venture between Backbone Infrastructure Limited (BINL) and NEFEX Holdings Limited of Canada.
According to a statement by BINL on Monday, the investment follows the Memorandum of Understanding signed in July between the company and the Ondo State Government through the Ondo State Investment Promotion Agency. The initiative will cover the construction of a 500,000-barrels-per-day refinery and the establishment of the 1,471-hectare Sunshine Free Trade Zone.
The company noted that the projects are designed to transform Ondo State into a major refining and export hub within the Niger Delta corridor, significantly boosting industrial activities and foreign exchange earnings.
A delegation from BINL, led by its Chairman and former Senate President, Senator Ken Nnamani, is expected in Akure to hold meetings with top government officials, pay a courtesy visit to Governor Lucky Aiyedatiwa, and inspect the proposed project sites. The visit will also feature engagements with host communities and 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 — a global engineering and energy infrastructure firm with footprints across North America, Europe, and the Middle East — would fast-track both technical and financial preparations for the project.
“Our partnership with NEFEX opens the next chapter for the commencement of the BINL refinery development,” Adekola said, adding that the collaboration would also involve synergy with the Nigerian National Petroleum Company Limited (NNPCL) to ensure seamless integration into the country’s oil value chain.
The proposed refinery is expected to supply Nigeria’s domestic petroleum needs, provide feedstock for industrial use, and export refined products to international markets. It will feature large-scale storage facilities, terminals, loading bays, and access roads to support operations.
Similarly, the Sunshine Free Trade Zone is planned to host industrial clusters, logistics bases, and residential developments, creating a new industrial corridor in the South-West.
The $50 billion investment, if successfully implemented, is projected to generate thousands of direct and indirect jobs, strengthen Nigeria’s refining capacity, reduce fuel import dependence, and conserve foreign exchange.
Industry experts say the development aligns with the Federal Government’s agenda to attract private capital into strategic infrastructure and replicate the success of the Dangote Refinery model across the country.
BINL, which maintains offices in Abuja, London, and Switzerland, said its corporate social responsibility initiatives would prioritise education, skills training, and infrastructure support for host communities.
Adekola commended Governor Aiyedatiwa for creating a stable investment environment in the state.
“The governor’s commitment to credible partnerships has made Ondo State a magnet for genuine investors,” he said.
The refinery and free zone project are expected to be developed in phases, with completion set to mark a turning point in Ondo’s industrialisation drive and its emergence as a key energy hub in the South-West region.