Backbone Infrastructure Ltd has secured more than $50 billion in funding commitments for the development of a 500,000 barrels-per-day refinery and the Sunshine Free Trade Zone in Ilaje Local Government Area of Ondo State. The funding was facilitated via a joint venture agreement between BINL and NEFEX Holdings Limited of Canada, making it one of the biggest single private sector investment packages targeted at Nigeria’s downstream oil and gas industry.
In a press statement issued by the company, the investment was sealed after the signing of a Memorandum of Understanding between BINL and the Ondo State Government, through the Ondo State Investment Promotion Agency, in July.
The company revealed that the project will transform Ondo State into a major refining and export hub in the Niger Delta corridor.
“Following the successful execution of the Memorandum of Understanding between Backbone Infrastructure Ltd and the Ondo State Government, through the Ondo State Investment Promotion Agency, for the construction of a 500,000 barrels-per-day refinery and the development of a 1,471-hectare Sunshine Free Trade Zone in the Ilaje area of Ondo State in July, Backbone has secured project funding exceeding $50bn for both projects through a joint venture agreement with its partner, NEFEX Holdings Limited of Canada,” it read.
The Chief Press Secretary to Lucky Aiyedatiwa, Ebenezer Adeniyan, disclosed that the Ondo State Governor received the investors on Tuesday, describing the collaboration as a key to guaranteeing sustainable industrialisation and long-term economic stability.
“The Joint Venture had secured over $50 billion for the development of a 500,000-barrels-per-day refinery and a 1,471-hectare sunshine free trade zone in Ilaje Local Government Area of the state.
The funding followed the successful execution of the Memorandum of Understanding between the Joint Venture and the state government through the Ondo State,” he said.
In his remarks, the Managing Director of Sunshine Infrastructure JV, Henry Owonka, stated that the project’s initial $30 billion valuation was reviewed to $50 billion after an expansion to cover broader infrastructure and community-driven initiatives.
“The Sunshine JV is not just an investment; it’s a development framework that will transform industries, strengthen communities and improve livelihoods,” he shared.
Aiyedatiwa has always called on investors to exploit the state’s abundant natural and economic resources, reiterating his government’s readiness to partner with investors.
The governor, who made the call while receiving the British Deputy High Commissioner to Nigeria, Mr Jonny Baxter, in October, described Ondo as a land of vast opportunities.
BINL’s Vice President for Corporate Services, Wale Adekola, concluded by saying that the collaboration with Services, Wale Adekola, and the partnership with NEFEX Petroline, an engineering, construction, and energy infrastructure firm with operations across North America, Europe, and the Middle East, will speed up the technical and financial groundwork needed to start construction.
“With operations across the Middle East, Europe, North America, and beyond, NEFEX Petroline combines the advantages of a global network with deep local understanding.
The firm maintains partnerships with leading global financial institutions to secure multi-currency credit lines and liquidity support for large-scale operations.
Our partnership with NEFEX opens the next chapter for the commencement of BINL Refinery development,” he added.
Folami David is a dynamic journalist who views the world through an analytical lens, translating complex narratives across multiple industries into compelling stories. With an insatiable appetite for information and a keen eye for emerging trends, Folami specializes in uncovering the interconnections between technology, business, culture, and society.
