Backbone Infrastructure will build a $15 billion refinery in Nigeria's Ondo State, with a capacity of 500,000 barrels per day. This facility will be the country's second largest, trailing only the Dangote refinery.

Backbone Infrastructure Nigeria Limited (BINL) announced on Wednesday, July 9, that it will construct a new crude oil refinery with a capacity of 500,000 barrels per day in Ondo State. The project, estimated at around $15 billion, will be developed in partnership with the state government through the Ondo State Development and Investment Promotion Agency (ONDIPA) within the Ilaje industrial free zone.

The memorandum of understanding is scheduled for signing on July 15, 2025. According to BINL officials, discussions are also underway with the state-owned Nigerian National Petroleum Company (NNPC) to include the public enterprise in the project.

No details have yet been provided regarding the mobilization of resources required for the infrastructure.

It is confirmed, however, that the project will be implemented in phases. The first phase, a 100,000-barrel-per-day unit, is scheduled for completion within 48 months. BINL also plans to develop related infrastructure such as roads, storage tanks, terminals, and handling equipment.

With its announced capacity, the future refinery will become the second largest in Nigeria, trailing only the Dangote Group's facility, which has a capacity of 650,000 barrels per day. The Dangote refinery began production in 2023, following a construction process that cost nearly $20 billion, with expenditures largely inflated by COVID-19-related logistical delays.

According to Wale Adekola, Vice President of BINL, the project is designed to supply petroleum products to the domestic market, feedstock to local industries, and finished products for export.

The announcement is part of a broader strategy by BINL, which plans to invest $4 billion in Nigeria’s mining sector, relying on public-private partnerships.

If the initiative materializes, it could strengthen Nigeria’s energy sovereignty while boosting local growth and public revenue. However, its success will depend on financial close, regulatory stability, and the ability to stay on schedule in an environment where delays are common.

Olivier de Souza