Massive $15 Billion Oil Refinery and Free Trade Zone Announced for Ondo State
Nigeria’s energy sector is set for a major transformation as Backbone Infrastructure Nigeria Limited (BINL) has unveiled ambitious plans to construct a $15 billion crude oil refinery and establish a free trade zone in Ondo State, marking one of the largest private sector investments in the country’s oil industry.
The multinational infrastructure development company announced it will build a 500,000 barrel per day refinery at the Sunshine Industrial Park and Sunshine Free Trade Zone in Ilaje Local Government Area, in partnership with the Ondo State Government.
The project, which will be executed as a joint venture with the Ondo State Development and Investment Promotion Agency (ONDIPA), represents a significant vote of confidence in Nigeria’s energy sector and could dramatically reduce the country’s dependence on imported petroleum products.
Phase one of the ambitious project is scheduled for completion within 48 months, beginning with an initial 100,000 barrels per day refining unit. BINL is also exploring partnership opportunities with the Nigerian National Petroleum Corporation Limited (NNPCL) to facilitate project delivery.
Wale Adekola, BINL’s Vice President for Corporate Services, emphasized the project’s transformative potential: “The refinery project includes the construction of roads, storage tanks, loading bays, terminals and handling equipment. The scope of the Free Trade Zone Project includes the development of the required infrastructure and facilities for the effective operation and management of the Free Trade Zone.”
The development is expected to supply petroleum products for domestic consumption, provide feedstock for local industries, and produce refined products for the export market. A formal memorandum of understanding between BINL and the state government is scheduled to be signed on July 15, 2025, following a courtesy visit to Governor Lucky Aiyedatiwa.
The project promises to create thousands of jobs, reduce Nigeria’s trade deficit, conserve foreign exchange, and boost government revenue while driving inclusive economic growth across Ondo State and surrounding communities.
Source: angolanminingoilandgas.com
