Nigeria is cementing its position as Africa’s refining powerhouse, with a new $50 billion investment secured for the construction of a 500,000-barrel-per-day refinery and a 1,471-hectare free trade zone in Ondo State. The landmark project will elevate Nigeria to host both the largest and second-largest refineries on the continent, following the success of the 650,000-barrel-per-day Dangote Refinery in Lagos.
The mega facility, spearheaded by Backbone Infrastructure Nigeria Limited (BINL) in partnership with Canada’s NEFEX Holdings Limited, marks one of the largest private-sector energy investments in West Africa. Once operational, the Ondo refinery will surpass Algeria’s Skikda Refinery, which currently ranks second in Africa with a 356,500-barrel-per-day capacity.
The refinery’s financing follows the signing of a memorandum of understanding (MoU) between BINL and the Ondo State government, facilitated by the Ondo State Investment Promotion Agency (ONDIPA). BINL chairman Ken Nnamani led discussions with Governor Lucky Aiyedatiwa on the project’s potential to create thousands of jobs and attract complementary investments in logistics, storage, and distribution.
According to BINL’s vice president for corporate services, Wale Adekola, NEFEX Petroline brings global experience from the Middle East, Europe, and North America to ensure world-class operational standards.
When completed, the Ondo refinery will not only boost Nigeria’s domestic fuel supply but also enhance exports across Africa, strengthening the country’s role as the continent’s leading energy hub.
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