The Nigerian petroleum downstream sector is set to witness another major milestone as Backbone Infrastructure Nigeria Limited (BINL) has announced plans to construct a $15 billion refinery with a capacity of 500,000 barrels per day (BPD) in Ondo State. The multi-phase project will also include the establishment of a Free Trade Zone (FTZ) within the Sunshine Industrial Park in Ilaje Local Government Area.
The ambitious project is a joint venture between BINL and the Ondo State Government, represented by the Ondo State Development and Investment Promotion Agency (ONDIPA). According to a press statement issued by the company, phase one of the refinery, starting with 100,000 BPD, is expected to be completed within 48 months.
As part of its implementation strategy, BINL is actively exploring a strategic partnership with the Nigerian National Petroleum Company Limited (NNPCL) to facilitate the construction and long-term sustainability of the refinery.
The refinery will be sited at Sunshine Industrial Park, Ogboti Eruuna, and will operate within the designated Sunshine Free Trade Zone. BINL is scheduled to pay a courtesy visit to the Executive Governor of Ondo State, Hon. Lucky Aiyedatiwa, on July 14, 2025. The following day, July 15, a formal Memorandum of Understanding (MoU) is expected to be signed between BINL and the Ondo State Government to flag off the project delivery.
Mr. Wale Adekola, Vice President for Corporate Services at BINL, disclosed that the refinery will supply petroleum products for both domestic consumption and the export market, as well as provide feedstock for other local industries. The comprehensive infrastructure to be built includes access roads, storage tanks, loading bays, terminals, and petroleum handling equipment.
Beyond the refinery, BINL also plans to fully develop the Sunshine Free Trade Zone, which will host multiple businesses operating under duty-free and regulatory incentives. The FTZ development will follow a strict governance structure, ensuring adherence to international standards, local regulations, and community development protocols.
Mr. Adekola further noted that the project would conserve Nigeria’s foreign exchange, narrow the country’s trade deficit, and boost government revenue through increased output and exports. The project is also expected to stimulate the Ondo State economy by generating local jobs, increasing demand for goods and services, and promoting the growth of ancillary industries.
In addition to its economic and industrial plans, BINL has outlined a Corporate Social Responsibility (CSR) strategy to ensure community participation and support. The CSR plan includes local employment quotas, education programs, and infrastructure support such as road rehabilitation, healthcare initiatives, and electricity access for surrounding host communities.
The company stressed the importance of early community engagement to mitigate opposition and foster mutual understanding. The CSR roadmap will be executed in line with sustainable development goals (SDGs) and environmental impact assessments to ensure long-term benefits for the region.
BINL, which has offices in Abuja, London, and Zug (Switzerland), describes itself as a multi-sectoral infrastructure development company. This refinery and FTZ development aligns with Nigeria’s broader objective of increasing domestic refining capacity, creating jobs, and attracting foreign direct investment under President Bola Tinubu’s Renewed Hope Agenda.
Once operational, the 500,000 BPD refinery will be among the largest in Africa, positioning Ondo State as a major petroleum refining hub and potentially complementing the Dangote refinery in Lagos and other modular refineries springing up across the Niger Delta.
