An international energy consortium has secured a massive $50 billion investment to build a 500000 barrels per day refinery and a 1471 hectare free trade zone in Ondo State, positioning Nigeria to host both the largest and second largest oil refineries in Africa.
The new facility will surpass Algerias Skikda Refinery, previously Africas second largest, and will stand alongside the 650000 barrels per day Dangote Refinery in Lagos. Once operational, Nigeria will dominate the continents refining capacity like never before.
The project is being spearheaded by Backbone Infrastructure Nigeria Limited (BINL) in partnership with NEFEX Holdings Limited of Canada, one of the biggest private sector energy investments in West Africa. Funding follows a memorandum of understanding (MoU) signed between BINL and the Ondo State government through ONDIPA.
During a courtesy visit to Governor Lucky Aiyedatiwa, BINL chairman Ken Nnamani highlighted the refinerys potential to create thousands of jobs and attract investment in logistics, storage, and distribution. BINL Vice President for Corporate Services, Wale Adekola, emphasized the advantage of partnering with NEFEX Petroline, a company with extensive operational experience across the Middle East, Europe, and North America.
The refinery is expected to supply petroleum products locally and across Africa, complementing Dangotes existing output and strengthening Nigerias role as the continents primary energy hub.
Together, the Dangote and Ondo refineries could process over 1.1 million barrels of crude oil per day, a major leap for a continent long dependent on imported fuel. With Dangote planning to expand to 1.4 million barrels per day, Nigeria is on track to become a global refining powerhouse.
For decades, Africa exported crude while importing refined products at high costs, draining foreign reserves and exposing economies to volatile global markets. This new wave of mega refineries marks a turning point, pushing the continent toward energy independence, enhanced local production, and a stronger economic future.
