- BINL and Canada-based NEFEX Holdings have signed a joint venture to finance a $50 billion refinery and free trade zone in Ondo State.
- The project aims to position Ondo as a key refining and export hub while creating thousands of jobs and reducing fuel imports.
Backbone Infrastructure Ltd (BINL) has secured over $50 billion in funding commitments to build a 500,000 barrels-per-day refinery and develop the Sunshine Free Trade Zone in Ilaje, Ondo State, advancing the state’s industrialisation agenda.
BINL and Canada-based NEFEX Holdings Limited signed a joint venture agreement to facilitate the funding, marking one of Nigeria’s largest private sector investments in the downstream oil and gas industry.
The company said on Monday, November 3, that the investment followed a Memorandum of Understanding it signed in July with the Ondo State Government through the Ondo State Investment Promotion Agency. The project positions Ondo State as a major refining and export hub in the Niger Delta corridor.
A team led by BINL Chairman and former Senate President Ken Nnamani will meet Governor Lucky Aiyedatiwa in Akure today, Tuesday, November 4. The team will inspect project sites, hold stakeholder meetings, and visit host communities, including the Olugbo of Ugbo Kingdom, Oba Obateru Akinrutan.
Meanwhile, BINL’s Vice President for Corporate Services, Wale Adekola, stated that the partnership with NEFEX Petroline would expedite the technical and financial preparations for construction. He said NEFEX Petroline’s experience in energy infrastructure, port development, and project financing would strengthen the project’s execution.
Adekola said BINL and NEFEX plan to collaborate with the Nigerian National Petroleum Company Limited to ensure full integration into Nigeria’s oil value chain. He added that the partnership represents a decisive step toward starting refinery construction.
In addition, the refinery will produce petroleum products for domestic use, supply feedstock to local industries, and export refined products to international markets. BINL said the project will also include storage facilities, loading bays, terminals, and internal road networks.
Furthermore, the 1,471-hectare Sunshine Free Trade Zone will host industrial clusters, logistics facilities, and residential zones, establishing Ondo State as an emerging industrial hub in Southwest Nigeria.
BINL said the $50 billion project will reduce Nigeria’s fuel import dependence, conserve foreign exchange, and create thousands of jobs. The company also stated that the investment supports the Federal Government’s goal of attracting private capital and expanding domestic refining capacity.
BINL, which operates offices in Abuja, London, and Zug, Switzerland, said it will implement community development programmes focused on education, skills training, and infrastructure.
Adekola praised Governor Aiyedatiwa for attracting credible investors and maintaining a supportive business climate. He said the governor’s leadership has created the right conditions for sustainable partnerships and long-term growth.