Nigeria is set to host Africa’s second-largest oil refinery as an international energy consortium secures a $50 billion investment to develop a 500,000-barrel-per-day facility in Ondo State.
The project, spanning 1,471 hectares within a dedicated free trade zone, positions Nigeria to tighten its grip on Africa’s refining industry.
Until now, Algeria’s Skikda Refinery — with a capacity of about 356,500 barrels per day — held that spot.
Once completed, the Ondo refinery will join the 650,000-barrel-per-day Dangote Refinery in Lagos to make Nigeria home to both the largest and second-largest refineries on the continent.
The initiative is spearheaded by Backbone Infrastructure Nigeria Limited (BINL) in partnership with Canada’s NEFEX Holdings Limited.
According to BINL, the funding was sealed through a memorandum of understanding (MoU) between the company and the Ondo State Government, represented by the Ondo State Investment Promotion Agency (ONDIPA).
Massive boost for local jobs and energy independence
Former Senate President and BINL chairman, Ken Nnamani, led the company’s delegation to Governor Lucky Aiyedatiwa to discuss the project’s transformative potential.
It is expected to create thousands of jobs, stimulate allied investments in logistics and storage, and deepen Nigeria’s domestic refining base.
BINL’s vice president for corporate services, Wale Adekola, said the project’s technical partner, NEFEX Petroline, brings decades of experience from operations across the Middle East, Europe, and North America.
“NEFEX Petroline combines the advantages of a global network with deep local understanding,” Adekola said. “This refinery will redefine West Africa’s energy supply chain.”
Industry observers say the refinery will complement Dangote’s capacity by supplying refined petroleum products locally and across Africa.
Together, the two mega projects could process over 1.1 million barrels of crude oil daily — a major leap for a continent long dependent on imported fuel.
If Dangote completes its planned expansion to 1.4 million barrels per day, Nigeria’s total refining capacity could approach 2 million barrels daily — enough to serve much of sub-Saharan Africa.
A Turning Point for Africa’s Oil Paradox
For decades, African producers like Nigeria and Angola exported crude oil but imported refined fuel at high costs, draining foreign reserves and exposing economies to global shocks.
The rise of large-scale private refineries signals a slow but historic reversal of that dependence.
With projects like Dangote’s and BINL’s in motion, experts predict Africa could achieve near energy self-sufficiency within the next decade.
Nigeria could soon become not just a crude exporter, but a net exporter of refined products to its neighbours
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