Ondo might be sitting on Nigeria’s next industrial boom, a $50 billion plan is in motion
Ondo might be sitting on Nigeria’s next industrial boom, a $50 billion plan is in motion
Backbone Infrastructure Secures $50bn Funding for Mega Refinery and Sunshine Free Trade Zone in Ondo
Backbone Infrastructure Limited has announced that it has secured funding commitments exceeding $50 billion for the development of a massive 500,000 barrels-per-day refinery and the Sunshine Free Trade Zone project in Ilaje, Ondo State.
The funding, facilitated through a joint venture agreement with NEFEX Holdings of Canada, marks a major milestone in the company’s efforts to transform Ondo State into one of Nigeria’s foremost energy and industrial hubs.
This development follows the Memorandum of Understanding (MoU) signed with the Ondo State Government in July 2025, signaling a strong partnership between the private sector and the government to unlock the state’s vast economic potential, especially in the coastal Ilaje axis known for its oil and gas reserves.
According to project insiders, the ambitious initiative will not only boost Nigeria’s refining capacity but also create thousands of direct and indirect jobs, promote exports, and drive industrialization across the Southwest region.
The Sunshine Free Trade Zone, designed to complement the refinery, will serve as a magnet for global investors, offering tax incentives, logistics advantages, and modern infrastructure to support industries ranging from petrochemicals to manufacturing and maritime services.
Industry experts describe the $50bn commitment as one of the largest private sector-driven investments in Nigeria’s oil and gas sector in recent years, reflecting renewed investor confidence in the country’s subnational development agenda.
When completed, the refinery project is expected to reduce Nigeria’s dependence on imported petroleum products, enhance energy security, and position Ondo State as a major refining and export hub in West Africa.
