Newsbreak: Ondo to host Africa’s 2nd largest $50b refinery
By Samuel Ogunsona
Two years after the largest refinery in Africa was built in Lagos, Ondo State is set to host the second-largest refinery in Africa.
The refinery will open up the Yoruba frontier states. No fewer than 20,000 jobs will be created
The investment is a $50 billion deal secured by an international energy consortium.
The mega project aims to significantly boost the continent’s refining capacity and strengthen Nigeria’s dominance in the oil refining landscape.
The refinery, with a capacity of 500,000 barrels per day, will be built in Ondo State and will surpass Algeria’s Skikda Refinery, which currently holds the title of Africa’s second-largest refinery.
The project is being led by Backbone Infrastructure Nigeria Limited and NEFEX Holdings Limited and represents one of the largest private-sector energy investments in West Africa.
The refinery will supply refined petroleum products locally and across Africa, complementing the existing Dangote Refinery and strengthening Nigeria’s position as a major energy hub.
Together, the two refineries could process over 1.1 million barrels of crude oil per day, marking a significant milestone in Africa’s energy transformation.
According to the agreement, the consortium will also develop a 1,471-hectare free trade zone in the area. The investment is expected to create thousands of jobs, stimulate economic growth, and attract complementary investments in logistics, storage, and distribution.
The refinery will supply refined petroleum products locally and internationally, complementing the output of the Dangote Refinery in Lagos.
The project partners include global companies such as China Harbour and Honeywell UOP. Once operational, the refinery could significantly cut Nigeria’s dependence on imported petroleum products and position Ondo State as a major industrial hub in Nigeria.
The investment deal follows the signing of a Memorandum of Understanding between the Sunshine Infrastructure Joint Venture and the Ondo State Government through the Ondo State Investment Promotion Agency.
The project is expected to drive industrial development, attract more investors, and improve livelihoods in the state.
