BINL to Build $15 billion 500,000 BPD Refinery, Establish Free Trade Zone in Ondo State

BINL to Build $15 billion 500,000 BPD Refinery, Establish Free Trade Zone in Ondo State

By:Michael Mike

Backbone Infrastructure Nigeria Limited (BINL) has concluded plans to construct and operate a 500,000 barrel per day (BPD) refinery at the Sunshine Industrial Park in Ogboti, Eruuna and establish the Sunshine Free Trade Zone (FTZ) in the Ilaje Local Government Area of Ondo State.

The refinery, a joint venture with the Ondo State Government represented by the Ondo State Development and Investment Promotion Agency (ONDIPA), will cost $15 billion, with phase one expected to be completed within 48 months.

BINL is exploring partnership with the Nigerian National Petroleum Corporation Limited (NNPCL) to facilitate the delivery of this ultra-modern crude oil refinery.

According to a statement on Wednesday. BINL has scheduled a courtesy visit to the Executive Governor of Ondo State, Hon. Lucky Aiyedatiwa on July 14, 2025.

BINL and the Ondo State Government represented by ONDIPA, will then formally execute memoranda of understanding on July 15, 2025 to kick off the delivery of these projects.

According to BINL, a multi-sectoral infrastructure development company with offices in Abuja, London and Zug, this project will be phased commencing with a 100,000 refinery.

BINL’s Vice President for Corporate Services, Mr Wale Adekola, said 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 development framework includes a comprehensive and strict governance structure the development of the local community in compliance with international standards and relevant laws.

According to Adekola, these projects will contribute significantly to reducing Nigeria’s trade deficit, conserving foreign exchange reserves, increasing government revenue and economic development.

He said at the state and local levels, these projects will create local jobs, stimulate the local economy through increased demand for goods and services, noting that the Corporate Social Responsibility (CSR) strategy includes community engagement programmes, such as education initiatives, local employment quotas, and infrastructure development for surrounding communities.

He revealed that the company is engaging local stakeholders early to mitigate potential opposition to the project.

BINL to Build $15 billion 500,000 BPD Refinery, Establish Free Trade Zone in Ondo State