Nigeria is poised to welcome a massive $15 billion investment in a 500,000 barrels per day (bpd) refinery project, marking a significant milestone in the country's efforts to boost its refining capacity and reduce dependence on imported petroleum products.
Nigeria is taking another significant step toward reducing its dependence on fuel imports and boosting domestic refining capacity, as Backbone Infrastructure Nigeria Limited (BINL) unveils plans to develop a $15 billion oil refinery with a processing capacity of 500,000 barrels per day.
The refinery will be established in partnership with the Ondo State Government, represented by the Ondo State Development and Investment Promotion Agency (ONDIPA), and will be sited within the Sunshine Industrial Park and Free Trade Zone (FTZ) in Ilaje Local Government Area.
According to BINL, the project will be executed in phases, with the first phase scheduled for completion within 48 months. Beyond serving domestic demand, the refinery is also positioned to make Nigeria a leading exporter of refined petroleum products across West Africa.
Speaking on the development, BINL's Vice President for Corporate Services, Mr. Wale Adekola, said the refinery will serve multiple markets and generate significant economic value.
"This is a game-changing industrial project that will help reduce Nigeria's trade deficit, conserve scarce foreign exchange, and boost government revenues. At the state and local levels, we are confident that it will stimulate job creation and drive economic activity," Adekola stated.
Nigeria's three state-owned refineries in Port Harcourt, Warri, and Kaduna contribute minimal output, as they remain under rehabilitation and have historically operated below capacity
The BINL refinery marks a bold move in Nigeria's ongoing effort to localize energy processing, create industrial hubs, and position itself as a refining powerhouse on the continent.
Nigeria's crude oil refining capacity
The announcement comes at a time when Nigeria's refining sector is under pressure to deliver results, with the long-anticipated Dangote refinery beginning phased operations.
As of May 2025, Nigeria's estimated functional refining capacity stood at approximately 974,500 barrels per day, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
However, actual refining output was significantly lower, recorded at 701,692 barrels per day. This shortfall is largely attributed to persistent feedstock constraints, logistical bottlenecks, and underperformance in state-owned refineries, many of which continue to undergo phased rehabilitation.
The 650,000 bpd Dangote Refinery, now operational, accounts for nearly 67% of Nigeria's functional refining capacity and is widely seen as a milestone in the country's drive for energy self-sufficiency.
The three state-owned refineries in Port Harcourt, Warri, and Kaduna contribute minimal output, as they remain under rehabilitation and have historically operated below capacity. Private modular refineries such as Aradel, Waltersmith, and OPAC provide additional support to domestic refining efforts.
The proposed BINL refinery, if delivered on schedule, could ease this pressure by expanding domestic capacity, attracting investment into the Free Trade Zone, and generating jobs.
Though financing and execution will be critical, the scale of the project reflects growing confidence in Nigeria's industrial potential.
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