Ondo Advances $50bn Refinery and Free Trade Zone Plan in Ilaje

Ondo State has taken a bold step toward becoming one of Africa’s leading industrial hubs, following the announcement that Backbone Infrastructure Ltd has secured funding commitments said to be worth more than $50 billion for a major refinery and the Sunshine Free Trade Zone in Ilaje. The plan, which first gained public attention earlier in 2025, aims to build a refinery with a future capacity of 500,000 barrels per day alongside a large-scale industrial and export zone on the state’s coastline. The initial phase is expected to begin at a smaller capacity and grow in stages, a model commonly used for very large refinery projects.

This development, if successfully executed, would place Ondo State on the global energy map and significantly expand Nigeria’s refining capacity at a time when the country is trying to reduce dependence on imported petroleum products. It also aligns with the state’s long-term vision to unlock economic potential in its coastal belt and turn Ilaje into a centre for energy, manufacturing, logistics and trade. The Sunshine Free Trade Zone, spread across thousands of hectares, is expected to host industries ranging from petrochemicals to marine logistics and export-focused manufacturing, taking advantage of special free-zone incentives designed to attract global investors.

Government officials and project partners have described the funding commitments as a turning point for their industrial agenda. However, projects of this size typically move through many technical and regulatory stages before construction begins. The refinery will need to secure all required approvals, including environmental studies, engineering designs, and licences from relevant regulatory agencies. Financial agreements also need to move from commitments and letters of intent to fully closed funding arrangements, with engineering contracts and construction timelines formally confirmed.

Despite these necessary processes, the announcement has sparked optimism among business leaders and residents in the Niger Delta. A refinery and industrial zone of this scale is expected to create thousands of jobs over time, stimulate local supply chains, and improve infrastructure in host communities. It also has the potential to boost Nigeria’s export earnings, support local participation in the energy sector, and position Ondo State as a major contributor to national industrial growth.

Across Nigeria, there has been renewed focus on expanding domestic refining and attracting global capital into the energy and manufacturing sectors. The Ondo initiative now joins other major private-sector refinery investments pushing the country toward greater energy independence. For Ondo State, however, the journey represents more than energy capacity; it is part of a broader ambition to build a new industrial coastline and offer young people opportunities in skilled trades, engineering, logistics and technology.

Much work lies ahead, and progress will be measured step by step as approvals are secured, financing is finalised, and construction phases begin. But the scale of commitment announced has given the state new momentum. With careful execution, transparent management and sustained investor confidence, this project has the potential to transform Ondo’s economy, shape the future of Ilaje, and contribute meaningfully to Nigeria’s industrial future.