Backbone Infrastructure Ltd Secures $50B Funding for Ondo 500,000bpd Refinery, Free Zone Development

Backbone Infrastructure Ltd Secures $50B Funding for Ondo 500,000bpd Refinery, Free Zone Development

By: Michael Mike

Following the successful execution of the Memorandum of Understanding (MoU) between Backbone Infrastructure Ltd and the Ondo State Government, through the Ondo State Investment Promotion Agency (ONDIPA), for the construction of a 500,000 barrels-per-day refinery and the development of a 1,471-hectare Sunshine Free Trade Zone in the Ilaje area of Ondo State in July, Backbone has secured project funding exceeding $50 billion for both projects through a joint venture agreement with its partner, NEFEX Holdings Limited of Canada.

The team, which arrived in Nigeria last Sunday, is set to visit Ondo State to interact with the State Government Officials and pay a courtesy call on the Executive Governor, HE Lucky Aiyedatiwa.

The BINL team will be led by the Chairman, HE Senator Ken Nnamani, including other Board members and the Executive management team led by Henry Owonka.

The meeting will explore the roadmap towards commencement of the projects, including presentations with ONDIPA and visits to the project sites and engagement with the host communities led by the Olugbo of Ugbo Kingdom, Oba Obateru Akinrutan.

Speaking on the refinery financiers, BINL’s Vice-President for Corporate Services, Mr Wale Adekola, disclosed that NEFEX Petroline is involved in engineering and construction services for ports, terminals and logistics facilities, including pipelines and facilities in the Oil and Gas Industry.

Their specialty also includes port and infrastructure development, petrochemical trading and supply, investment and project management.

Adekola stated, ‘’With operations across the Middle East, Europe, North America, and beyond, NEFEX Petroline combines the advantages of a global network with deep local understanding. The firm maintains partnerships with leading global financial institutions to secure multi-currency credit lines and liquidity support for large-scale operations.’’

‘’Our partnership with NEFEX opens the next chapter for the commencement of BINL Refinery development, ‘’ the BINL executive added.

BINL, which operates from offices in Abuja, London and Zug, Switzerland, is also exploring a strategic partnership with the Nigerian National Petroleum Company Limited (NNPC Ltd) to drive the development of the ultra-modern refinery complex.

BINL initiative would provide a critical lifeline, easing pressure on foreign exchange reserves and enhancing national energy security.

It said its corporate social responsibility strategy would prioritise education, local employment quotas and infrastructure development in surrounding communities.

The BINL refinery will provide petroleum products for local consumption, feedstock for other local industries and petroleum products for the international market.

The refinery project includes the construction of roads, storage tanks, loading bays, terminals and handling equipment. The scope of the Free Trade Zone Project includes the development of the required infrastructure and facilities for the effective operation and management of the Free Trade Zone.

The projected $50billion investments in the refinery and FTZ are expected to change the landscape of infrastructure in Ondo state while transforming the social and economic status of the people.

Adekola applauded Governor Aiyedatiwa for his commitment and robust support for the projects which have attracted a groundswell of approval from the people of the state across the globe.

‘’We commend the governor for opening the state to genuine investors and creating the right environment to partner with investors, local and international.’’

Backbone Infrastructure Ltd Secures $50B Funding for Ondo 500,000bpd Refinery, Free Zone Development