Nigeria’s lofty ambition to build a 500,000-barrel-per-day (bp/d) oil refinery has advanced with the signing of a new deal.
The project will be led by Sunshine Joint Venture Infrastructure Limited, a newly formed company formed to handle the refinery’s construction.
On Thursday, Spokesperson Wale Adekola acknowledged the development, citing the dedication of all parties.
The refinery will be located within Ondo State’s free trade zone, with strong support from the state government.
Before this recent agreement, the project had already entered a new phase under Backbone Infrastructure Nigeria Limited, which conducted technical engagements and site surveys, Gazelle News reports.
The new company will now administer the existing Memoranda of Understanding (MoUs) signed with Ondo State via the Ondo State Investment Promotion Agency, according to a statement the company released.
“In furtherance of our commitment to the execution of these two major projects, Refinery and Free Trade Zone, in conjunction with the Ondo State Government, the joint partners have taken another giant step by incorporating a joint company, namely, SUNSHINE JOINT VENTURE INFRASTRUCTURE LIMITED, as the vehicle to be used in executing these projects,” the statement read.
Nigeria’s new refinery
Last month, reports highlighted Africa’s drive toward greater economic self-reliance as Nigeria prepares to build this $50 billion refinery, which will be funded by a worldwide energy consortium.
The facility is more than just a technical achievement; it represents a strategic milestone in Africa’s transition from crude export dependency to domestic refining and energy processing.
For a region long troubled with fuel import dependence and unpredictable global markets, the Ondo refinery is a critical step toward energy independence, industrial growth, and control over important supply chains.
The planned refinery will be built on a 1,471-hectare free trade zone, giving Nigeria two of Africa’s largest refining facilities once completed.
Algeria’s Skikda Refinery, capable of producing approximately 356,500 barrels per day, is currently the continent’s second-largest refinery.
Once operational, the Ondo refinery will outperform Skikda but fall slightly behind the Dangote Oil Refinery, which currently has a refining capacity of 650,000 barrels per day and wants to expand to 1.4 million barrels per day.
This project strengthens Nigeria’s expanding position in Africa’s energy landscape and emphasizes the continent’s ability to control more of its energy production, refining, and supply chains in the coming years.
