Backbone Infrastructure Ltd has secured funding commitments exceeding $50 billion 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 through a joint venture agreement between BINL and NEFEX Holdings Limited of Canada, marking one of the largest single private sector investment packages targeted at Nigeria’s downstream oil and gas industry.

According to a statement issued by the company on Monday, the investment follows 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 said the project is expected to transform the state into a key refining and export hub in the Niger Delta corridor.

The statement read, “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 $50bnfor both projects through a joint venture agreement with its partner, NEFEX Holdings Limited of Canada.”

The statement added that a team from BINL, led by its Chairman and former Senate President, Senator Ken Nnamani, is scheduled to visit Akure on Monday for meetings with state government officials and a courtesy visit to Governor Lucky Aiyedatiwa.

The visit will also include site inspections, stakeholder engagements, and consultations with host communities, including 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, an engineering, construction, and energy infrastructure firm with operations across North America, Europe, and the Middle East, will fast-track the technical and financial groundwork needed to commence construction.

Their specialty also includes port and infrastructure development, petrochemical trading and supply, investment, 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. 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,” the BINL executive added.

He added that the BINL-NEFEX partnership represents “the next chapter” in the company’s refinery development efforts, with plans to also collaborate with the Nigerian National Petroleum Company Limited to ensure seamless integration into Nigeria’s oil value chain.

The refinery, upon completion, is expected to meet local demand for petroleum products, provide feedstock to industries, and export refined products to international markets. It will also include storage facilities, loading bays, terminals, and a network of internal roads, according to the project brief.

Similarly, the 1,471-hectare Sunshine Free Trade Zone will host industrial clusters, logistics facilities, and residential zones, positioning Ondo State as an emerging industrial hub in Southwest Nigeria.

The $50bn project could significantly reduce Nigeria’s reliance on imported refined fuel, conserve foreign exchange, and create thousands of direct and indirect jobs.

It also aligns with the Federal Government’s push to attract private capital into critical infrastructure, especially as the country seeks to replicate the Dangote Refinery model and expand its refining capacity.

BINL, which operates offices in Abuja, London, and Zug, Switzerland, said its corporate social responsibility framework will focus on education, skills development, and infrastructure projects in host communities.

Adekola commended Governor Aiyedatiwa for his “visionary leadership” and commitment to attracting credible investors.

“We commend the governor for opening the state to genuine partnerships and creating the right environment for both local and international investors to thrive,” he said.

The refinery and free zone project, expected to span several phases, could redefine the economic landscape of Ondo State, making it a key energy and industrial hub in Nigeria’s South-West region. (The PUNCH)