Backbone Infrastructure, Canadian Firm Secure $50bn Funding For 500,000bpd Refinery in Nigeria
- Backbone infrastructure Limited (BINL) has announced that it has secured $50bn funding for a 500,000bpd refinery in Ondo State
- The project, which is in partnership with NEFEX Holdings Limited, a Canadian firm, will also incorporate a free trade zone
- The firms have already signed and MoU with the Ondo State government for the commencement of the project
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Backbone Infrastructure Limited (BINL) has secured over $50 billion in funding to build a 500,000 barrels-per-day (bpd) refinery and develop the 1,471-hectare Sunshine Free Trade Zone in Ilaje, Ondo State.
The funding comes through a joint venture partnership with Canadian firm NEFEX Holdings Limited, marking one of the largest private-sector refinery investments in Nigeria’s history.
Source: Getty Images
BINL, NEFEX team up for energy transformation
The project follows the signing of a Memorandum of Understanding (MoU) in July between BINL and the Ondo State Government, through the Ondo State Investment Promotion Agency (ONDIPA).
A delegation led by BINL Chairman, Senator Ken Nnamani, and Executive Director, Henry Owonka, recently arrived in Nigeria to meet with government officials, including a courtesy visit to Governor Lucky Aiyedatiwa, to finalize project modalities.
The team will also hold meetings with ONDIPA, conduct site inspections, and engage host communities, including the Olugbo of Ugbo Kingdom, Oba Obateru Akinrutan, to ensure community participation in the project.
According to BINL Vice-President for Corporate Services, Wale Adekola, the collaboration with NEFEX Petroline will bring global technical expertise and financing experience to Nigeria’s energy sector.
NEFEX brings global expertise and financing power
Adekola explained that NEFEX Petroline specializes in engineering, construction, and logistics for oil and gas facilities, pipelines, and terminals, with operations spanning North America, Europe, and the Middle East.
He said the Canadian company maintains strong partnerships with top financial institutions to access multi-currency credit lines and liquidity support for mega infrastructure projects.
“Our partnership with NEFEX opens the next chapter for the commencement of BINL’s refinery development,” Adekola noted.
Refinery to strengthen Nigeria’s energy independence
The upcoming refinery, with support from the Nigerian National Petroleum Company Limited (NNPC Ltd), aims to reduce Nigeria’s dependence on fuel imports, strengthen foreign exchange reserves, and enhance national energy security.
Once operational, the plant will supply refined petroleum products for domestic consumption, industrial use, and export markets, positioning Ondo as a key player in Nigeria’s downstream sector.
The refinery complex will also include roads, storage tanks, loading bays, and handling terminals, creating thousands of direct and indirect jobs for Nigerians.
Sunshine Free Trade Zone to drive economic growth
The Sunshine Free Trade Zone will feature world-class infrastructure to support manufacturing, logistics, and energy services. The development is expected to attract foreign investors, boost export capacity, and stimulate regional trade.
Adekola commended Governor Lucky Aiyedatiwa for fostering an investor-friendly climate in the state, which has drawn positive responses from local and diaspora investors alike.
“We commend the governor for his commitment and leadership in opening Ondo to genuine international partnerships,” he said.
A Transformational project for Ondo State
With its $50 billion investment, the BINL-NEFEX refinery and Free Trade Zone project is set to transform Ondo State’s economy, create jobs, improve infrastructure, and elevate the state’s position as a new industrial hub in Nigeria’s Southwest.
The initiative represents a bold step toward energy self-sufficiency, sustainable development, and economic diversification for Nigeria.
Source: UGC
The massive project comes a few months after a consortium announced plans to build 450,000 GAIL Refinery to complement the massive Dangote Refinery.
Meanwhile, Aliko Dangote, Chairman of the Dangote Group, has announced plans to upgrade the refinery to 1.4mbpd, the world’s largest refining facility.
Governor gives date for South-East Refinery
Legit.ng earlier reported that the South-East is poised to get a new refinery to boost the region’s competitiveness as one of the oil-producing regions in Nigeria.
The new modular refinery, being built in Abia state, will provide about 1,000 direct jobs.
Abia State governor, Alex Otti, said he is committed to the timely delivery of the proposed 10,000 barrels per day modular refinery.
Source: Legit.ng
