Petroleum refining capacity in Nigeria may increase by 500,000 barrels per day (bpd) as Backbone Infrastructure Nigeria Limited (BINL), yesterday, unveiled plans to build a $15 billion refinery and establish a free trade zone (FTZ) in Ondo state.

The assets, which may rival existing 650,000 bpd refinery from Dangote and Nigeria-owned 445,000 bpd refineries, could increase Nigeria’s quest for energy self-sufficiency and industrial growth.

The proposed refinery will be sited at the Sunshine Industrial Park in Ogboti, Eruuna, within the Ilaje Local Government Area. The project, a joint venture with the Ondo State Government through its development agency ONDIPA, is expected to take off in phases, starting with a 100,000-bpd module and would be delivered within 48 months.

Speaking ahead of a scheduled courtesy visit to the Governor of Ondo State, Lucky Aiyedatiwa, BINL’s Vice President for Corporate Services, Wale Adekola, said the refinery would serve both domestic and international markets, supplying refined petroleum products for local consumption as well as feedstock for allied industries.

According to him, formal signing of memoranda of understanding (MoUs) between BINL and ONDIPA would take place on July 15 to formally kick-start the delivery of the refinery and FTZ projects.

“We are looking beyond refining crude oil. This is a comprehensive industrialisation blueprint. The project encompasses road construction, storage tanks, loading bays, terminal facilities, and handling infrastructure. The FTZ will feature tailored facilities to support efficient operations and attract global investment,” Adekola noted.

BINL, which operates from offices in Abuja, London and Zug, Switzerland, is also exploring a strategic partnership with the Nigerian National Petroleum Company Limited (NNPC Ltd) to drive the development of what it describes as an “ultra-modern” refinery complex.

BINL initiative, if realised, would provide a critical lifeline, easing pressure on foreign exchange reserves and enhancing national energy security.

The company said it had embedded a “strict governance structure” in its development framework, with emphasis on adherence to international standards and Nigerian regulations.

Its corporate social responsibility strategy, Adekola added, would prioritise education, local employment quotas and infrastructure development in surrounding communities.

“These projects are expected to contribute meaningfully to reducing Nigeria’s trade imbalance, improving government revenue and stimulating economic development. For the host communities, we’re committed to local content, job creation and early stakeholder engagement to ensure sustainable development and avoid opposition,” he said.

While questions remain over project financing, regulatory bottlenecks and historical delays that have plagued similar efforts in the past, BINL in a release, insisted it is prepared to navigate the challenges, backed by a consortium of technical and yet-to-name financial partners.