Backbone Infrastructure Nigeria Limited (BINL), an indigenous oil firm, has announced plans to build and operate a 500,000 barrels-per-day crude oil refinery in Ilaje Local Government Area of Ondo State.
In a statement released on Wednesday, BINL said the proposed $15 billion refinery project is a joint venture with the Ondo State Government, represented by the Ondo State Development and Investment Promotion Agency (ONDIPA).
BINL’s Vice President for Corporate Services, Wale Adekola, stated that the refinery will supply petroleum products for local consumption, serve as feedstock for other domestic industries, and provide refined products for the international market.
Following a visit to Governor Lucky Aiyedatiwa, the infrastructure development company confirmed that it will soon sign formal agreements with ONDIPA on the plant.
The project is part of BINL’s Route 1, 2, 3, and 6 Corridors Mission—an initiative to deliver strategic infrastructure across Nigeria.
The refinery will include supporting infrastructure such as terminals, storage tanks, roads, loading bays, and handling facilities.
The facility will span both the Sunshine Industrial Park and the Sunshine Free Trade Zone in Ondo State, with the first phase scheduled for completion within the next four years.
BINL also noted that it is in ongoing discussions with Nigeria’s state-owned oil company, NNPC Ltd., for potential technical and strategic partnerships.
What you should know
Once completed, this massive fuel processing facility will become the third privately-led refinery project in Nigeria this decade.
The 650,000 b/d Dangote Refinery in Lagos State was commissioned in 2023 and began commercial operations in 2024.
Meanwhile, the 200,000 b/d BUA refinery and petrochemical plant in Akwa Ibom State is said to be “progressing steadily.”
These two mega plants, together with BINL’s proposed 500,000 b/d plant, will offer a combined capacity of 1.35 million barrels per stream day to Nigeria.
The BINL refinery will also become the second major refinery—after Dangote’s—to be located in Nigeria’s Southwest region.
It is also expected to be the next refinery situated within a Nigerian free trade zone. The Dangote plant is located in the Lekki Free Trade Zone in Lagos, while the BUA plant is within the newly created Liberty Free Trade Zone in Akwa Ibom.
Although other equity partners for the $15 billion BINL project aside from ONDIPA are not yet publicly confirmed, some industry analysts suggest that Afreximbank could be a potential financial partner.
In April 2025, Afreximbank launched a $3 billion credit facility aimed at adding over 1.3 million b/d to Africa’s refining capacity over the next few years.
Notably, the bank has been instrumental in funding several refining projects across Nigeria.
It is the largest financier of the Dangote Refinery and has also supported the refurbishment of the Port Harcourt Refinery (210,000 bpd), in addition to funding approvals for both the BUA and Azikel refineries
