In what is being described as one of the largest single private-sector investments in Nigeria’s oil and gas industry, Backbone Infrastructure Nigeria Limited (BINL) has secured funding commitments exceeding $50 billion for the establishment of a 500,000 barrels-per-day (bpd) refinery and the development of the Sunshine Free Trade Zone in Ilaje Local Government Area of Ondo State.
The funding deal was facilitated through a joint venture agreement between BINL and NEFEX Holdings Limited of Canada, marking a major milestone in efforts to reposition Nigeria as a refining and export hub within the West African energy corridor.
According to the company, the project, which was first initiated in July 2025 following the signing of a Memorandum of Understanding (MoU) with the Ondo State Government, will transform the state’s economic landscape by integrating refining operations with industrial, logistics, and residential developments within the Sunshine Industrial Park and Free Trade Zone.
Speaking on the development, Mr. Wale Adekola, Vice President for Corporate Services at BINL, described the funding commitment as “a breakthrough that underscores the confidence of international investors in Nigeria’s oil and gas potential.”
“This partnership with NEFEX Holdings brings strong technical and financial expertise to the table. It signals a new era of energy investment and industrial development for Ondo State and Nigeria as a whole,” Adekola said.
The BINL–NEFEX collaboration aims to not only establish a world-class refinery capable of meeting both domestic demand and export targets, but also promote the Sunshine Free Trade Zone as a regional hub for value-added industries, technology-driven logistics, and international trade.
Industry experts believe the refinery project will reduce Nigeria’s dependence on imported petroleum products, create tens of thousands of jobs, and generate substantial foreign exchange savings for the economy.
The Ondo State Government has also expressed optimism that the project will catalyze industrial growth in the coastal region, attract complementary investments, and open new opportunities for youth empowerment and community development in the Niger Delta corridor.
Meanwhile, BINL has hinted at ongoing discussions with the Nigerian National Petroleum Company Limited (NNPC Ltd) and other strategic partners to ensure seamless integration into Nigeria’s national oil value chain.
Analysts have noted that the development aligns with the Federal Government’s broader vision to strengthen domestic refining capacity, diversify exports, and accelerate regional industrialisation.
While earlier estimates had placed the total project cost around $15 billion, the new funding package reportedly scales up to more than $50 billion, reflecting the project’s expanded scope and potential long-term impact on Nigeria’s energy infrastructure.
If successfully executed, the Ondo Refinery and Free Trade Zone Project will become Nigeria’s second-largest refinery complex, after the Dangote Refinery, reinforcing Ondo State’s position as a rising industrial hub in the South-West region.
