BINL to Establish $15bn, 500,000bpd Oil Refinery in Ondo State

Backbone Infrastructure Nigeria Limited (BINL), in partnership with the Ondo State Government, is set to establish a $15 billion crude oil refinery with a capacity of 500,000 barrels per day (bpd) in the state. The project will be located within the Sunshine Industrial Park and the Sunshine Free Trade Zone in Ilaje Local Government Area.

The refinery is part of a broader Public-Private Partnership (PPP) initiative facilitated by the Ondo State Development and Investment Promotion Agency (ONDIPA). It aims to enhance Nigeria’s refining capacity and promote industrialization within the state.

According to BINL’s Vice President of Corporate Services, Wale Adekola, the project will be executed in phases, with an initial 100,000bpd modular refinery scheduled for completion within 48 months. Upon full development, the refinery will produce 500,000bpd of refined petroleum products for domestic use and export.

BINL is seeking collaboration with the Nigerian National Petroleum Company Limited (NNPC Ltd.) for feedstock supply and infrastructure support.

The company will also invest in critical infrastructure within the Free Trade Zone, including internal roads, storage tanks, loading bays, and terminal facilities.

A Memorandum of Understanding (MoU) between BINL and ONDIPA is expected to be signed on July 15, following a courtesy visit to Governor Lucky Aiyedatiwa on July 14.

The agreement will formalize the roles of stakeholders and lay the groundwork for the commencement of construction.

The Ondo State Government has assured investors of a conducive environment and necessary support to fast-track approvals and regulatory clearances.

Analysts say the project is poised to create thousands of jobs, reduce Nigeria’s reliance on imported fuels, boost state revenue, and contribute significantly to economic growth.

The refinery will also reinforce the federal government’s objective of achieving self-sufficiency in petroleum refining.