A major boost has been injected into Nigeria’s downstream oil sector as Backbone Infrastructure Nigeria Limited (BINL) announced it has secured substantial funding commitments exceeding $50 billion for the development of an ultra-modern refinery and a sprawling Free Trade Zone (FTZ) in Ondo State.
The historic funding package, described as one of the largest single private sector investment commitments targeting the Nigerian energy landscape, was facilitated through a joint venture agreement with NEFEX Holdings Limited of Canada.
The $50 billion commitment is earmarked for two ambitious projects situated in the Ilaje Local Government Area of the state:
1. The construction of a 500,000 barrels-per-day (bpd) refinery, which will significantly contribute to Nigeria’s goal of energy self-sufficiency.
2. The development of the 1,471-hectare Sunshine Free Trade Zone (FTZ), designed to host industrial clusters, logistics facilities, and attract diversified global investment.
Fueling Energy Security
This landmark financing follows the successful execution of a Memorandum of Understanding (MoU) between BINL and the Ondo State Government, through the Ondo State Investment Promotion Agency (ONDIPA), in July 2025.
According to a statement released by BINL, the partnership with NEFEX Holdings, which specializes in large-scale engineering and construction services for the oil and gas industry, marks the “next chapter for the commencement of BINL Refinery development.” The firm’s Vice President for Corporate Services, Mr. Wale Adekola, confirmed that NEFEX maintains partnerships with leading global financial institutions to secure the necessary multi-currency credit lines.
Expected Economic Impact
Upon completion, the 500,000 bpd refinery is expected to be a game-changer for the Nigerian economy. The project is designed not only to meet local demand for various petroleum products but also to provide feedstock for domestic industries and facilitate the export of refined products to international markets.
The BINL team, including Chairman Senator Ken Nnamani, is set to meet with the Ondo State government, led by Governor Lucky Aiyedatiwa, to finalize the roadmap and begin the immediate implementation phase of the projects.
