Nigeria to build USD 15-billion, 500,000-bpd refinery

ABUJA, July 10, 2025 – Backbone Infrastructure Nigeria (BINL) has announced plans to construct a 500,000-bpd refinery and establish the Sunshine Free Trade Zone in Ilaje, Ondo State, through a joint venture with the Ondo State Government, the company announced on Wednesday.

The refinery, to be located at the Sunshine Industrial Park in Ogboti, Eruuna, will be developed in phases, starting with a 100,000-bpd unit and supported by infrastructure including roads, storage tanks, terminals and loading bays.

The first phase is scheduled for completion within 48 months, and BINL is currently exploring a partnership with NNPC to support project delivery. Formal agreements with the Ondo State Development and Investment Promotion Agency will be executed on July 15, 2025, following a courtesy visit to the state governor a day earlier.

BINL’s vice-president for corporate services Wale Adekola said that the BINL refinery will provide petroleum products for local consumption, feedstock for other local industries and petroleum products for the international market.

The Sunshine Free Trade Zone will include key facilities for effective operations and will be governed under a strict development framework aligned with international standards and local laws.

These projects are expected to play a major role in narrowing Nigeria’s trade imbalance, preserving foreign exchange reserves, boosting government earnings and driving overall economic growth. At the state and community levels, they will generate employment opportunities and spur economic activity by raising demand for local goods and services.

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