State Governor Excited As Another Refinery Construction Set To Begin in Nigeria
- Ondo State government has signed $50 billion deal with global investors to build a 500,000-bpd refinery
- Governor Lucky Aiyedatiwa says the project will drive industrialisation, job creation, and economic growth
- The consortium behind the project is led by Ken Nnamani and Henry Owonka, and the project is valued at $50 billion
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Ondo State has signed a landmark $50 billion investment agreement with an international consortium to develop a 500,000-barrel-per-day refinery.
The refinery will be constructed on a 1,471-hectare free trade zone, a move expected to transform Ondo State into a major industrial and energy hub
Source: Twitter
Ondo seals deal for new refinery
In a statement released on Wednesday, November 5, Governor Lucky Orimisan Aiyedatiwa who formalised the agreement on Tuesday under the Sunshine Infrastructure Joint Venture (JV) framework.
During the singing, the excited governor described the deal as a new dawn for Ondo State’s industrial future.
According to the state government, the multi-billion-dollar investment aims to drive large-scale industrialisation, create thousands of jobs, and stimulate growth across key sectors including energy, agriculture, aviation, and healthcare.
Aiyedatiwa also said the project represents a “strategic step towards sustainable industrialisation and long-term economic stability,” assuring investors of transparency, ease of doing business, and strong institutional support from his administration.
The governor said.
“This marks a new dawn for Ondo State’s industrial future. Our goal is to make Ondo a preferred destination for investment, innovation, and inclusive growth."
Investors for the new refinery
The consortium behind the refinery includes Backbone Infrastructure, MJ Care Investment Finance, China Harbour, and Honeywell OUP, which will implement the project in Ilaje Local Government Area under the coordination of the Ondo State Investment Promotion Agency (ONDIPA).
Henry Owonka, Managing Director of Sunshine Infrastructure JV, said the project’s valuation increased from $30 billion to $50 billion following the inclusion of expanded infrastructure components and community-focused programmes, Punch reports.
Owonka stated:
“This is not just an investment; it’s a development framework designed to transform industries, strengthen communities, and improve livelihoods. Construction will begin after final regulatory approvals."
Source: Getty Images
The Sunshine Free Trade Zone, one of the project’s anchors, is expected to attract manufacturing, logistics, and export-oriented businesses, offering fiscal incentives to domestic and foreign investors.
The consortium’s chairman, former Senate President Ken Nnamani, was praised for his leadership and commitment to advancing the partnership, which stakeholders described as a model for credible public-private collaboration.
Analysts say the project could significantly boost the state’s internally generated revenue and reduce Nigeria’s dependence on imported petroleum products once completed.
FG to sell Nigeria’s 4 refineries
In a related development, Legit.ng reported that the Federal Government is considering the sale of Nigeria’s four state-owned refineries, a bold reform move aimed at attracting private investment, boosting efficiency, and strengthening competition in the country’s petroleum downstream sector.
The proposed divestment comes as the energy landscape in Nigeria undergoes a major transformation, driven by the entry of the 650,000 barrels-per-day Dangote Refinery and the gradual liberalisation of fuel pricing.
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Source: Legit.ng
