Governor Lucky Aiyedatiwa of Ondo State has signed an agreement with Backbone Infrastructure Nigeria Limited (BINL) to construct and operate a 500 barrels per day (BPD) ultra-modern oil refinery at the Sunshine Industrial Park in Ogboti, Eruuna, located in the Ilaje Local Government Area of the state.
The $15 billion project is a joint venture between the Ondo State Government represented by the Ondo State Development and Investment Promotion Agency (ONDIPA), BINL, and the Nigerian National Petroleum Corporation Limited (NNPCL).
Under the MoU, Backbone will 65 percent equity share while the Ondo State government and the NNPCL will take 20 percent and 15 percent. Phase one of the oil refinery is expected to be completed within 48 months.
Secretary to the Ondo State Government (SSG), Dr. Taiwo Fasoranti while signing the Memorandum of Understanding (MoU) on behalf of the State said
“I want to specifically ask that we take care of the host communities. It is very important to us.”
Governor Aiyedatiwa in a prior meeting with the investors before the signing of the MoU, described the project as a game changer that aligns with his government’s development agenda and pledged full support.
“It’s going to be a mutually beneficial relationship. At the end of the day, we will all smile and all rejoice,” the Governor noted.
The board chairman of BINL Dr. Ken Nnamani who was represented by Dr. Steve Dike, and the company’s Vice President for Legal and Corporate Affairs Wale Adelola both expressed confidence in the success of the partnership, describing it as the beginning of greater things for Ondo State.
“We have had some other invitations but none have provided the concrete in terms of spirit, motivation, and the leadership that we have seen from Ondo State,” BNIL said.
BINL said earlier that the refinery will provide petroleum products for local consumption, feedstock for other local industries, and petroleum products for the international market, as will be delivered along with the construction of roads, storage tanks, loading bays, terminals, and handling equipment.
The MoU also involves the construction of a Free Trade Zone including the development of the required infrastructure and facilities for the effective operation and management to boost industrialization and economic growth.
