Backbone Says It Has Secured Funding For 500,000bpd Refinery In Ondo

Following the successful execution of the memorandum of understanding (MoU) between Backbone Infrastructure Nigeria Ltd (BINL) and the Ondo State Government, through the Ondo State Investment Promotion Agency (ONDIPA), for the construction of a 500,000 barrels-per-day refinery and the development of a 1,471-hectare Sunshine Free Trade Zone in the Ilaje area of Ondo State in July, Backbone has secured project funding exceeding $50 billion for both projects through a joint venture agreement with its partner, NEFEX Holdings Limited of Canada.

The refinery project includes the construction of roads, storage tanks, loading bays, terminals and handling equipment. In contrast, the scope of the Free Trade Zone Project provides for the development of the required infrastructure and facilities for the effective operation and management of the Free Trade Zone.

The projected $50 billion investments in the refinery and FTZ are expected to transform the infrastructure in Ondo state while transforming the people’s social and economic status.

Addressing journalists on the refinery financiers, BINL’s vice-president for corporate services, Mr Wale Adekola, said that NEFEX Petroline is involved in engineering and construction services for ports, terminals and logistics facilities, including pipelines and facilities in the oil and gas industry.

He also noted that their specialities included port and infrastructure development, petrochemical trading and supply, and investment and project management.

Adekola said, “With operations across the Middle East, Europe, North America, and beyond, NEFEX Petroline combines the advantages of a global network with deep local understanding. The firm maintains partnerships with leading global financial institutions to secure multi-currency credit lines and liquidity support for large-scale operations.

“Our partnership with NEFEX opens the next chapter for the commencement of BINL Refinery development.”

Meanwhile, the BINL team, led by the chairman, Ken Nnamani, including other board members and the executive management team led by Henry Owonka, has met with the Ondo State government team to explore the roadmap towards commencement of the projects. This includes presentations with ONDIPA, visits to the project sites, and engagement with the host communities led by the Olugbo of Ugbo Kingdom, Oba Obateru Akinrutan.

Adekola also applauded Ondo State governor, Lucky Aiyedatiwa for his commitment and robust support for the projects, which have attracted a groundswell of approval from the state’s people across the globe.

“We commend the governor for opening the state to genuine investors and creating the right environment to partner with investors, local and international,” he stated.