Nigeria’s $50 Billion Refinery Project Moves Forward with New Joint Venture

 

​Nigeria’s aspiration to become a leading energy hub in Africa has taken a significant step forward with a major green light for its planned $50 billion oil refinery project. The massive 500,000-barrel-per-day (bp/d) facility, set to be constructed in the Free Trade Zone of Ondo State, has recently formalized a new operational agreement to fast-track its execution.

​Formation of the Joint Venture

​The latest development involves the establishment of a new corporate vehicle: SUNSHINE JOINT VENTURE INFRASTRUCTURE LIMITED. This company has been created by the primary stakeholders—including Backbone Infrastructure Nigeria Limited (BINL) and its international partner, NEFEX Holdings Limited of Canada—to oversee the construction and various Memoranda of Understanding (MoUs) signed with the Ondo State Government.

​Wale Adekola, Group Vice President for BINL, emphasized that this joint venture reinforces the commitment of the funding partners to move ahead as a united front, signaling an end to implementation delays and focusing on coordinated execution.

​A Mega-Project for Africa's Energy Future

​This colossal undertaking, representing one of the largest private-sector energy investments in West Africa, is designed to be a game-changer for Nigeria and the continent. Upon completion, the 500,000 bp/d facility is projected to become Africa's second-largest oil refinery, complementing the existing capacity provided by the Dangote Oil Refinery.

​The involvement of NEFEX Holdings Limited brings extensive global expertise from operations spanning the Middle East, Europe, and North America, combining a global network with deep local understanding to ensure the project’s long-term developmental impact.

​The refinery is strategically located to supply essential refined petroleum products both locally—helping Nigeria overcome its persistent fuel supply challenges—and across the African continent, cementing Nigeria's role as a major regional energy supplier.