Backbone Infrastructure Ltd has announced funding commitments exceeding $50 billion for the development of a 500,000 barrels-per-day refinery and the Sunshine Free Trade Zone in Ilaje, Ondo State — a project set to transform the state into one of Nigeria’s major refining and export hubs.
The financing, facilitated through a joint venture partnership with NEFEX Holdings of Canada, marks one of the largest private-sector commitments to industrial infrastructure in Nigeria’s southwest region. The initiative follows the Memorandum of Understanding (MoU) signed between Backbone Infrastructure and the Ondo State Government in July, laying the groundwork for large-scale energy and industrial development.
According to project stakeholders, the proposed refinery aims to strengthen Nigeria’s downstream oil capacity and reduce the nation’s reliance on imported refined petroleum products. The Sunshine Free Trade Zone — a key component of the project — will serve as a strategic hub for energy processing, logistics, and export activities, creating significant employment and investment opportunities within the region.
Officials familiar with the plan noted that the funding structure combines equity participation, project finance, and strategic investments from international partners, ensuring a sustainable framework for long-term operations.
Ondo State Governor Lucky Aiyedatiwa had earlier emphasized that the project aligns with the administration’s vision to industrialize the coastal zone and leverage the state’s natural resources for economic diversification.
When completed, the refinery and trade zone are expected to boost Nigeria’s refining capacity, stimulate regional trade, and enhance the nation’s standing as a key energy player in West Africa.
— Ranks Africa Business Desk
