Ondo State Secures £12 Billion Oil Refinery Deal To Transform Ilaje’s Economic Landscape.
The Ondo State Government has signed a landmark Memorandum of Understanding (MoU) with Backbone Infrastructure Nigeria Limited (BINL) to construct a 500,000 barrels per day (bpd) oil refinery and develop a Free Trade Zone (FTZ) in Ilaje Local Government Area, marking a pivotal moment for the state’s industrial ambitions. The £12 billion ($15 billion) project, announced on Tuesday, 22 July 2025, is set to drive significant job creation, attract global investment, and position Ondo as a key player in Nigeria’s energy sector.
The refinery, to be located at the Sunshine Industrial Park in Ogboti, Erunna, will be executed in phases, with the first phase—a 100,000 bpd modular refinery—slated for completion within 48 months. Alongside the refinery, the Sunshine Free Trade Zone will feature advanced infrastructure, including roads, storage tanks, terminals, and handling equipment, designed to support both local and international markets. The project is a joint venture with the Ondo State Development and Investment Promotion Agency (ONDIPA), with BINL holding a 65% equity stake, the state government 20%, and the Nigerian National Petroleum Company Limited (NNPCL) 15%.
Governor Lucky Aiyedatiwa, speaking at the MoU signing ceremony in Akure, described the initiative as a “game-changer” for Ondo State. “This partnership aligns with our vision to industrialise Ondo and create a business-friendly environment. It will generate thousands of jobs, reduce crime, and boost our economy,” he said. The governor highlighted the state’s commitment to supporting genuine investors, noting that preliminary discussions with BINL began after a courtesy visit on 14 July, culminating in the formal agreement on 15 July.
BINL’s Vice President for Corporate Services, Wale Adekola, expressed optimism about the collaboration, stating, “This marks the beginning of greater things for Ondo State. Our refinery will supply petroleum products for local consumption, provide feedstock for industries, and serve export markets, reducing Nigeria’s trade deficit and conserving foreign exchange.” Adekola also emphasised the company’s commitment to community development, with a robust Corporate Social Responsibility (CSR) plan focusing on education, local job quotas, and infrastructure improvements to benefit Ilaje communities.
The project has undergone rigorous legal and administrative reviews, as confirmed by Emmanuel Omomowo, Administrative Secretary of ONDIPA. “The terms of the agreement ensure compliance with international standards and local regulations, paving the way for a seamless execution,” he said. The signing ceremony was attended by notable figures, including the state’s Attorney General and Commissioner for Justice, Dr Kayode Ajulo (SAN), and BINL executives such as Dr Stephen Dike, Dr Aliyu Ahmed, Paul Waliber, and Jean-Michel Roberts.
The refinery, poised to be Nigeria’s second-largest after the 650,000 bpd Dangote Refinery, is expected to bolster the country’s refining capacity, which currently stands at 974,500 bpd but operates below potential due to feedstock and logistical challenges. BINL is also in talks with NNPCL for technical and strategic support, aiming to ensure the project’s success. The initiative is projected to create thousands of direct and indirect jobs, stimulate local economies, and position Ondo as a major industrial and export hub in West Africa.
Local stakeholders have welcomed the development, with community leaders in Ilaje expressing hope that the project will bring long-term economic benefits. “This is a transformative opportunity for our youth and businesses,” said a local representative. However, some observers caution that timely execution will depend on securing funding and navigating Nigeria’s regulatory landscape, which has historically delayed large-scale projects.
As Ondo State embarks on this ambitious venture, the refinery and FTZ are seen as a bold step towards energy self-sufficiency and economic growth, aligning with Nigeria’s broader goal of reducing reliance on imported petroleum products. With the Aiyedatiwa administration’s backing and BINL’s expertise, the project promises to redefine Ondo’s industrial future and deliver tangible benefits to its people.
