In a major economic breakthrough for Nigeria's oil and gas sector, Backbone Infrastructure Limited (BINL) has successfully secured over $50 billion in funding for the development of a massive refinery and free trade zone project in Ondo State.
Historic Partnership for Economic Transformation
The monumental financing was finalized through a joint venture agreement between BINL and Canadian-based NEFEX Holdings Limited. This development follows a Memorandum of Understanding initially signed between BINL and the Ondo State Government through the Ondo State Investment Promotion Agency (ONDIPA) back in July.
A high-level delegation from NEFEX Holdings arrived in Nigeria on Sunday, November 2, 2025, to commence official engagements. The delegation is scheduled to visit Ondo State for meetings with government officials, pay a courtesy visit to Governor Lucky Aiyedatiwa, and engage with host communities under the leadership of Oba Obateru Akinrutan, the Olugbo of Ugbo Kingdom.
Project Specifications and Global Expertise
The BINL team will be led by its chairman, Senator Ken Nnamani, alongside board members and executive management personnel headed by Henry Owonka. According to Wale Adekola, BINL's Vice President for Corporate Services, their Canadian partners bring substantial international experience through NEFEX Petroline, a subsidiary specializing in engineering, port development, petrochemical trading, and project financing across multiple continents.
"Our partnership with NEFEX opens the next chapter for the commencement of the BINL Refinery development," Adekola stated. He emphasized that "NEFEX maintains partnerships with global financial institutions to secure multi-currency credit lines and liquidity support for large-scale operations."
Economic Impact and Community Benefits
The $50 billion investment is projected to fundamentally transform Ondo State's economic landscape while delivering substantial benefits to the national economy. The project is expected to:
- Create thousands of direct and indirect employment opportunities
- Expand local infrastructure including roads and logistics facilities
- Strengthen Nigeria's energy security by reducing pressure on foreign exchange reserves
- Position Ondo State as a key player in Nigeria's oil and gas sector
The refinery project will feature comprehensive infrastructure including storage tanks, loading bays, terminals, and other essential logistics facilities. Meanwhile, the Sunshine Free Trade Zone will be equipped with modern support facilities designed to enable seamless trade operations.
The company has committed to prioritizing education, implementing local employment quotas, and developing community infrastructure as part of its corporate social responsibility initiatives.
Adekola praised Governor Aiyedatiwa's leadership and investor-friendly policies, noting that the administration's approach has fostered confidence among both local and international partners. "We commend the governor for creating the right environment for genuine investors and for his robust support, which has attracted widespread approval from the people of the state," he added.
Upon completion, the 500,000 barrels-per-day refinery is projected to supply petroleum products for domestic consumption, serve as feedstock for local industries, and export surplus products to international markets, marking a significant milestone in Nigeria's journey toward energy self-sufficiency.
