Backbone Infrastructure Ltd has secured commitments worth over $50bn to develop a 500,000-barrel-per-day refinery and the Sunshine Free Trade Zone in the Ilaje Local Government Area of Ondo State.
The funds were arranged through a joint venture between BINL and NEFEX Holdings Limited of Canada, representing one of the largest private sector investments in Nigeria’s downstream oil and gas sector.
In a statement on Monday, the company said the investment follows a Memorandum of Understanding it signed with the Ondo State Government through the Ondo State Investment Promotion Agency in July.
BINL explained that the project will position Ondo State as a major refining and export hub within the Niger Delta corridor.
According to the company, “After signing the MoU with the Ondo State Government for the 500,000-barrel-per-day refinery and the 1,471-hectare Sunshine Free Trade Zone in July, Backbone secured project funding exceeding $50bn through a joint venture agreement with NEFEX Holdings Limited of Canada.”
A team from BINL, led by Chairman and former Senate President Senator Ken Nnamani, is expected in Akure today to meet with state officials and pay a courtesy visit to Governor Lucky Aiyedatiwa.
Their visit will also cover site inspections, stakeholder meetings, and discussions with host communities, 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, a global engineering and energy infrastructure firm, will accelerate both technical and financial preparations for construction.
He noted that NEFEX Petroline operates across North America, Europe, and the Middle East, specializing in port development, petrochemical trading, investment, and project management.
Adekola added that NEFEX’s global reach and strong financial partnerships will help secure credit lines and liquidity support needed for large-scale operations.
He said, “This partnership with NEFEX marks a new phase in the development of the BINL Refinery project.”
Adekola also revealed that BINL plans to work with the Nigerian National Petroleum Company Limited to ensure smooth integration into the national oil value chain.
Once completed, the refinery will meet domestic fuel demand, supply local industries, and export refined products. It will include storage facilities, loading bays, terminals, and a network of internal roads.
The Sunshine Free Trade Zone, covering 1,471 hectares, will feature industrial clusters, logistics centers, and residential areas, helping to establish Ondo State as an emerging industrial hub in Southwest Nigeria.
The $50bn initiative is expected to cut Nigeria’s dependence on imported fuel, save foreign exchange, and create thousands of jobs.
It supports the Federal Government’s goal of attracting private investment into infrastructure and expanding local refining capacity, similar to the Dangote Refinery model.
BINL, which has offices in Abuja, London, and Zug, Switzerland, said its corporate social responsibility efforts will focus on education, skill development, and infrastructure for host communities.
Adekola praised Governor Aiyedatiwa for his leadership and commitment to attracting credible investors. He said the state’s welcoming environment encourages both local and international partnerships.
The refinery and free zone projects will be executed in phases and are expected to reshape Ondo State’s economy, making it a key energy and industrial hub in Southwest Nigeria.
source:punchng.com
African Energy Council