Ondo, Foreign Partner Advance $50bn Refinery and Free Trade Zone Project

Ondo State’s ambitious refinery and free trade zone project has moved into a critical implementation stage following the formalisation of a joint venture between the state government and Backbone Infrastructure Nigeria Limited (BINL). The partnership signals renewed momentum for what is poised to become one of the largest private-sector–driven industrial developments in Nigeria.

According to BINL, the new phase includes detailed technical engagements and on-site assessments in Ilaje Local Government Area, the designated location for both the 500,000 barrels-per-day refinery and the Sunshine Free Trade Zone.

The progress comes shortly after BINL announced that it had secured more than $50 billion in funding commitments for the project. The financing, one of the largest single investment packages targeted at Nigeria’s downstream sector, was facilitated through a joint venture agreement between BINL and NEFEX Holdings Limited of Canada.

In a statement issued on Saturday, Wale Adekola, Vice President of Corporate Services at BINL, confirmed that the agreement had led to the establishment of Sunshine Joint Venture Infrastructure Limited, the special-purpose vehicle that will oversee execution of the refinery and the broader industrial corridor.

Adekola said the new implementation phase demonstrates the seriousness of the investors and the state government, adding that preliminary technical work and site preparations are already underway.

The planned refinery is expected to significantly boost Nigeria’s refining capacity, create thousands of jobs, stimulate industrial activity in the Niger Delta region, and position Ondo State as a major energy and logistics hub.

State officials say the project aligns with Ondo’s long-term economic development strategy and will attract manufacturing, maritime, and export-oriented investments once the free trade zone is operational.