Backbone Infrastructure Ltd (BINL) has secured more than $50 billion in funding commitments for the construction of a 500,000 barrels-per-day refinery and the Sunshine Free Trade Zone in Ilaje, Ondo State. The investment, facilitated through a joint venture between BINL and Canada’s NEFEX Holdings Limited, marks one of the largest private sector-led inflows into Nigeria’s downstream oil and gas sector.
The landmark funding follows a Memorandum of Understanding signed in July between BINL and the Ondo State Government through the Ondo State Investment Promotion Agency. According to the company, the twin projects are designed to position the state as a key refining and export hub within the Niger Delta corridor.
“Following the successful execution of the Memorandum of Understanding between Backbone Infrastructure Ltd and the Ondo State Government… Backbone has secured project funding exceeding $50bn for both projects through a joint venture agreement with its partner, NEFEX Holdings Limited of Canada,” the company said in a statement.
A BINL delegation led by its Chairman, former Senate President Ken Nnamani, will visit Akure for meetings with state officials and Governor Lucky Aiyedatiwa. The visit will include site inspections, consultations with host communities, and a royal audience with the Olugbo of Ugbo Kingdom, Oba Obateru Akinrutan.
According to BINL’s Vice President for Corporate Services, Wale Adekola, the partnership with NEFEX Petroline will accelerate technical and financial groundwork. NEFEX, a global engineering and energy infrastructure firm, operates across North America, Europe, and the Middle East, specializing in refinery construction, port development, petrochemical trading, and project management.
“With operations across the Middle East, Europe, North America, and beyond, NEFEX Petroline combines the advantages of a global network with deep local understanding,” Adekola said. “Our partnership with NEFEX opens the next chapter for the commencement of BINL Refinery development.”
The refinery, when completed, will help meet local demand for petroleum products, supply feedstock to industries, and export refined products to international markets. It will also feature storage facilities, loading terminals, and an internal road network, boosting logistics efficiency.
The adjoining 1,471-hectare Sunshine Free Trade Zone will include industrial clusters, logistics hubs, and residential estates, positioning Ondo as a major industrial hub in Southwest Nigeria. The $50 billion investment is expected to reduce Nigeria’s dependence on imported refined fuel, conserve foreign exchange, and create thousands of jobs.
The project aligns with the Federal Government’s agenda to attract private capital into critical infrastructure and replicate the success of the Dangote Refinery model. BINL plans to work with the Nigerian National Petroleum Company Limited to integrate seamlessly into the country’s oil value chain.
BINL, which has offices in Abuja, London, and Zug, Switzerland, said its corporate social responsibility initiatives will focus on education, skills training, and infrastructure support in host communities. Adekola praised Governor Aiyedatiwa’s “visionary leadership” and commitment to creating a welcoming environment for investors.
The refinery and free zone project are expected to unfold in phases, with construction anticipated to reshape the region’s economic profile. Once operational, Ondo could emerge as a key energy and manufacturing hub, complementing Nigeria’s broader drive for industrial diversification.