An international energy consortium has secured a $50 billion investment to develop what will become Africa’s second-largest oil refinery in Ondo State, Nigeria, significantly boosting the continent’s refining capacity.
This major development positions Nigeria to further strengthen its dominance in Africa’s oil refining landscape, with the new facility projected to have a capacity of 500,000 barrels per day and include a 1,471-hectare free trade zone.
Before this project, Algeria’s Skikda Refinery, with a capacity of approximately 356,500 barrels per day, held the position of Africa’s second-largest refinery.
Once operational, the Ondo refinery will surpass Skikda, making Nigeria home to both the largest and second-largest refining facilities on the continent.
The multibillion-dollar project is being led by Backbone Infrastructure Nigeria Limited (BINL) in collaboration with NEFEX Holdings Limited of Canada.
It represents one of the largest private-sector energy investments in West Africa and will rank just below the 650,000-barrel-per-day Dangote Refinery in Lagos, as seen on Business Insider Africa.
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According to a statement released by the company, the funding was secured following the signing of a memorandum of understanding (MoU) between BINL and the Ondo State government, represented by the Ondo State Investment Promotion Agency (ONDIPA).
BINL’s chairman, Ken Nnamani, led the company’s leadership team on a courtesy visit to Governor Lucky Aiyedatiwa, where discussions focused on the project’s potential to generate thousands of jobs and attract additional investments in logistics, storage, and distribution.
BINL’s vice president for corporate services, Wale Adekola, stated that NEFEX Petroline, the project’s partner, brings a wealth 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, emphasizing the venture’s long-term developmental benefits.
The refinery is expected to supply refined petroleum products both domestically and across Africa, complementing Dangote’s existing capacity and reinforcing Nigeria’s role as the continent’s leading energy hub.
Together, the two mega refineries could process over 1.1 million barrels of crude oil per day, a major step forward for a continent that has long faced limited refining infrastructure and a dependence on imported fuels.
This combined capacity is projected to reach nearly 2 million barrels per day once the Dangote Refinery completes its planned expansion from 650,000 to 1.4 million barrels per day.
Such growth would solidify Nigeria’s position as a global refining powerhouse and a driving force in Africa’s energy transformation.
For decades, African nations have exported crude oil while importing petrol, diesel, and aviation fuel at high costs, a paradox that has drained foreign reserves and left economies vulnerable to global price fluctuations.
With the emergence of projects like Dangote’s and BINL’s, this trend is beginning to reverse.
By significantly increasing local refining output, Africa is moving steadily toward energy self-sufficiency, with the goal of meeting its own fuel needs and exporting refined products across the continent.
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Image Credit: Business Insider Africa
