Proposed Ondo State’s refinery and free trade zone project is gradually coming into fruition after Backbone Infrastructure Nigeria Limited and the state government formalised a joint venture platform and commenced technical engagements including site assessments for a refinery and free trade zone project in Ilaje Local Government Area.
The latest least of life came after Backbone Infrastructure Ltd recently disclosed that it has secured more than $50 billion in funding commitments for a 500,000bpd refinery and the Sunshine Free Trade Zone in Ilaje, Ondo State.
According to the disclosure, the funding was facilitated through a joint venture agreement between BINL and NEFEX Holdings Limited of Canada, which marks one of the largest single private sector investment packages targeted at Nigeria’s downstream oil and gas industry.
A statement at the weekend by the Vice President, Corporate Services at Backbone Infrastructure Limited, Wale Adekola, revealed that the agreement has led to the creation of Sunshine Joint Venture Infrastructure Limited, which will serve as the execution platform for the refinery and industrial corridor.
Adekola disclosed that the entity was established after months of technical reviews and information-sharing sessions with the Ondo State Investment Promotion Agency, bringing together BINL, NEFEX Petro Line Limited and Cooldeal Limited to work with the state government through ONDIPA.
He noted that the partners in the JV include Bacckbone Infrastructure Limited, NEFEX Petro Line Limited and Cooldeal Limited, working in partnership with the Ondo State Government through ONDIPA.
Adekola said NEFEX is represented in the joint venture by Messrs Navid, Egbal and MJ, while BINL’s representation includes its Directors, Henry Owonka and Steve Dike. Namvapor Maryam Fard is representing Cooldeal Limited.
The statement read: “As a follow up to the engagements and sharing of information and technical reviews and presentations with the Ondo State Investment Promotion Agency, the partners have initiated the necessary process by the establishment of the Sunshine Joint venture Infrastructure Limited, the platform by the partners, Bacckbone Infrastructure Limited, NEFEX Petro Line Limited and Cooldeall Limited, to work with the Ondo State Government, represented by ONDIPA.”
In order to advance the implementation roadmap, ONDIPA officials had led a combined team of JV partners and global technical consultants from China Harbour, China Engineering and Honeywell on a site assessment tour across the Ilaje waterways.
The visit, which included engagements with community stakeholders, covered the designated development zones earmarked for the refinery and free trade operations.
Adekola described the visit as “a major milestone confirming the readiness of partners to move from planning to structured execution.”
Adekola added that the team had earlier been received by the Ondo State Governor, Lucky Aiyedatiwa, during a courtesy visit led by the Chairman of BINL and former Senate President, Senator Ken Nnamani.
Aiyedatiwa had lauded the investors for selecting Ondo as the destination for the large-scale project, noting that the initiative would accelerate industrial growth in the state and contribute meaningfully to Nigeria’s economic diversification agenda.
“We are committed to providing a conducive environment for this partnership to thrive and for all stakeholders to enjoy mutually beneficial outcomes,” the governor was quoted as saying.
The delegation also visited the Olugbo of Ugbo Kingdom, Oba Frederick Obateru Akinruntan, who expressed strong support for the project, particularly its potential to transform the Ilaje coast into a major industrial hub.
The monarch warmly received the foreign partners, including Egbal, JM and Maryam, and assured them of the kingdom’s backing, including community cooperation and security.
“Ugbo Kingdom will give full support to ensure the success of the project for the benefit of all,” the Olugbo told the team.
Adekola said the joint venture remains committed not only to the project’s technical success but also to ensuring local communities benefit from modern social amenities. Planned interventions include hospitals, schools, potable water systems, and new settlement clusters equipped with essential infrastructure.
“The team is fully aligned with the design plans and will follow through on every step of the roadmap to deliver a world-class industrial project,” he added.
The refinery and free trade zone development project forms part of Ondo State’s long-term industrialisation plan aimed at leveraging the economic potential of its coastal belt. Earlier project outlines include pipelines, tank farms, modular and standard refinery units, fabrication yards, export-processing facilities and a dedicated logistics corridor intended to attract global energy and manufacturing players.
The refinery, upon completion, is expected to meet local demand for petroleum products, provide feedstock to industries, and export refined products to international markets. It will also include storage facilities, loading bays, terminals, and a network of internal roads, according to the project brief.Michael Olugbode
About the Author
