An international energy consortium has finalized a landmark $50 billion investment deal to build what will become Africa’s second-largest oil refinery in Ondo State, Nigeria.
This move is expected to greatly enhance the continent’s refining capacity and reduce dependence on imported fuels.
The project, valued at over $50 billion, will see the construction of a 500,000-barrel-per-day refinery alongside a 1,471-hectare free trade zone, positioning Nigeria as a dominant player in Africa’s oil refining industry.
Until now, Algeria’s Skikda Refinery, with a capacity of about 356,500 barrels per day, held the distinction of being the continent’s second-largest. Once operational, the new Ondo refinery will surpass it, giving Nigeria both the largest and second-largest refining complexes in Africa — alongside the Dangote Refinery in Lagos, which has a capacity of 650,000 barrels per day.
The ambitious initiative is being led by Backbone Infrastructure Nigeria Limited, BINL, in collaboration with NEFEX Holdings Limited of Canada. It represents one of the most significant private-sector energy investments ever recorded in West Africa.
According to a statement by the company, funding was secured following the signing of a Memorandum of Understanding, MoU, between BINL and the Ondo State Government, facilitated by the Ondo State Investment Promotion Agency, ONDIPA.
Ken Nnamani, chairman of BINL, led a delegation to visit Governor Lucky Aiyedatiwa, where discussions focused on the project’s potential to create thousands of direct and indirect jobs, while attracting investment in logistics, storage, and fuel distribution networks.
BINL’s vice president for corporate services, Wale Adekola, noted that the project’s partner, NEFEX Petroline, brings deep operational expertise gained across the Middle East, Europe, and North America, ensuring the refinery meets global standards of efficiency and sustainability.
The refinery will produce refined petroleum products for both domestic consumption and export across Africa, complementing the output from Dangote Refinery and strengthening Nigeria’s position as the continent’s leading energy hub.
Together, the two facilities are expected to refine over 1.1 million barrels of crude oil per day, marking a major milestone in Africa’s drive toward industrial self-reliance.
With the Dangote Refinery planning an expansion to 1.4 million barrels per day, the combined capacity could soon approach 2 million barrels daily, securing Nigeria’s place as a global refining powerhouse.
For decades, African nations have exported crude oil only to import refined products such as petrol, diesel, and aviation fuel — an imbalance that has depleted foreign reserves and exposed economies to global market shocks. Projects like those spearheaded by BINL and Dangote Industries signal a turning point in this long-standing dynamic.
By increasing domestic refining capacity, Africa is steadily moving toward energy self-sufficiency, reducing import costs and creating the foundation for long-term economic stability through refined product exports.
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