An international energy group has secured a $50 billion investment to construct what will become Africa’s second-largest oil refinery in Ondo State, Nigeria.
The project will feature a 500,000-barrel-per-day refining capacity and include a 1,471-hectare free-trade zone. The venture is being led by Backbone Infrastructure Nigeria Limited (BINL) in partnership with Canada-based NEFEX Holdings Limited.
The agreement follows the signing of a memorandum of understanding between BINL and the Ondo State government, represented by the Ondo State Investment Promotion Agency (ONDIPA). Company officials say the refinery will create thousands of jobs and attract new investments in logistics, storage, and distribution.
Once completed, the facility will surpass Algeria’s Skikda Refinery, currently Africa’s second-largest, and join Nigeria’s existing Dangote Refinery in strengthening the country’s dominance in the continent’s refining sector.
For years, many African nations have exported crude oil but imported refined petroleum products at high cost. Industry analysts say this project marks a major shift toward energy self-sufficiency, helping Africa retain more value from its natural resources.
The consortium’s partners say the project combines global expertise with local insight. NEFEX brings experience from operations across the Middle East, Europe, and North America, while BINL emphasizes its commitment to developing sustainable infrastructure that will boost Nigeria’s energy and industrial future.