Plans have reached an advanced stage on the establishment of a mega petroleum refinery in Ondo State
The backbone of the project that is set to trigger further development in Nigeria’s petroleum downstream sector is Infrastructure Nigeria Limited (BINL)
It will build a $15 billion mega refinery with capacity to produce 500,000 barrels daily BPD.
Also, the company will establish a Free Trade Zone in Ondo State.
Already, BINL has concluded plans to construct and operate the planned 500,000 BPD refinery at the Sunshine Industrial Park in Ogboti, Eruuna and Sunshine Free Trade Zone (FTZ) in the Ilaje Local Government Area of Ondo State.
The firm disclosed these in a statement on Wednesday describing the planned refinery as a joint venture with the Ondo State Government,represented by the Ondo State Development and Investment Promotion Agency (ONDIPA).
It will cost $15 billion, with phase one expected to be completed within 48 months.
Already, BINL is exploring partnership with the Nigerian National Petroleum Corporation Limited (NNPCL) to facilitate the delivery of this ultra-modern crude oil refinery.
The company has also scheduled a courtesy visit to Ondo State Governor Lucky Orimisan Aiyedatiwa on July 14, 2025.
Together with the Ondo State Government represented by ONDIPA, the company is expected to formally execute a memoranda of understanding on July 15, 2025 to kick off the delivery of these projects.
BINL, a multi-sectoral infrastructure development company with offices in Abuja, London and Zug, said this project will be phased commencing with a 100,000 refinery.
Its Vice President for Corporate Services, Mr Wale Adekola, said the BINL refinery will provide petroleum products for local consumption, feedstock for other local industries and petroleum products for the international market.
The refinery project includes the construction of roads, storage tanks, loading bays, terminals and handling equipment.
The scope of the Free Trade Zone Project includes the development of the required infrastructure and facilities for the effective operation and management of the Free Trade Zone.
The development framework includes a comprehensive and strict governance structure the development of the local community in compliance with international standards and relevant laws.
According to Adekola, these projects will contribute significantly to reducing Nigeria’s trade deficit, conserving foreign exchange reserves, increasing government revenue and economic development.
At the state and local levels, these projects will create local jobs, stimulate the local economy through increased demand for goods and services.
The Corporate Social Responsibility (CSR) strategy includes community engagement programs, such as education initiatives, local employment quotas, and infrastructure development for surrounding communities. Engaging local stakeholders early to mitigate potential opposition to the project.
