An international energy consortium led by Backbone Infrastructure Nigeria Limited and NEFEX Holdings Limited has secured a $50 billion financing package to build a 500,000 barrels-per-day (bpd) oil refinery in Ondo State, the group said in a statement.
The proposed facility, which the consortium says would be Africa’s second-largest refinery, is intended to complement existing capacity on the continent most notably the Dangote Refinery and to strengthen Nigeria’s refining footprint by reducing dependency on imported refined products and creating opportunities for exports across the region.
Key project details
– Investment: $50 billion
– Capacity: 500,000 bpd
– Location: Ondo State, Nigeria
– Lead sponsors: Backbone Infrastructure Nigeria Limited and NEFEX Holdings Limited
Expected benefits and challenges
Project backers highlighted potential gains including increased domestic fuel availability, export capacity for refined products, and substantial local job creation.
The scale of the development will also require extensive supporting infrastructure storage tanks, pipelines, power supply, transport links and port logistics and offers opportunities for local contractors and suppliers.
Analysts and observers, however, note that the project still faces significant hurdles: formal regulatory approvals, environmental impact assessments, licensing, and finalisation of engineering, procurement and construction (EPC) and financing arrangements. Coordination with federal agencies, the Nigerian National Petroleum Company (NNPC) and Ondo State authorities will be critical, particularly on local content and permitting.
The consortium said it will proceed through the necessary regulatory and planning processes and expects to make further announcements as key permits and contracts are secured. Government responses and detailed timelines remain awaited as stakeholders assess the proposal’s feasibility and economic impact.
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