By Joshua Tosin Ogunsakin 
Ondo State has taken a major leap in its industrialisation drive as Backbone Infrastructure Ltd (BINL) announced funding exceeding $50 billion for a 500,000 barrels-per-day refinery and the Sunshine Free Trade Zone in Ilaje Local Government Area.
The investment, secured through a joint venture with Canada’s NEFEX Holdings Limited, is among the largest private sector contributions to Nigeria’s downstream oil and gas industry. It follows a Memorandum of Understanding signed in July between BINL and the Ondo State Government through the state’s Investment Promotion Agency.
“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,” the statement said.
A BINL team, led by Chairman and former Senate President Senator Ken Nnamani, will visit Akure today for meetings with government officials and a courtesy call to Governor Lucky Aiyedatiwa. The delegation will inspect project sites, meet host communities, and hold a royal audience with the Olugbo of Ugbo Kingdom, Oba Obateru Akinrutan.
BINL’s Vice President for Corporate Services, Wale Adekola, said NEFEX Petroline, with operations across North America, Europe, and the Middle East, will fast-track the technical and financial groundwork for 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,” Adekola said.
‘’Our partnership with NEFEX opens the next chapter for the commencement of BINL Refinery development,’’ he added.
The BINL-NEFEX partnership also plans to work with the Nigerian National Petroleum Company Limited to integrate the refinery into the national oil value chain. Once operational, the refinery will supply local demand, provide industrial feedstock, and export refined products internationally. It will feature storage facilities, loading bays, terminals, and a network of internal roads.
The 1,471-hectare Sunshine Free Trade Zone will host industrial clusters, logistics hubs, and residential areas, positioning Ondo State as an emerging industrial hub in Southwest Nigeria.
The $50 billion project is expected to reduce Nigeria’s dependence on imported fuel, conserve foreign exchange, and create thousands of jobs. BINL said its corporate social responsibility framework will focus on education, skill development, and infrastructure projects in host communities.
“We commend the governor for opening the state to genuine partnerships and creating the right environment for both local and international investors to thrive,” Adekola said.
The refinery and free zone, to be developed in phases, could redefine Ondo State’s economic landscape and establish it as a key energy and industrial hub in the South-West.