Ondo State Signs $50bn Investment Deal for Mega Refinery and Free Trade Zone
The Ondo State Government has signed a landmark $50 billion investment agreement with a consortium of international firms under the Sunshine Infrastructure Joint Venture (JV) to establish a 500,000-barrels-per-day refinery and a 1,471-hectare Free Trade Zone in Ilaje Local Government Area of the state. Governor Lucky Aiyedatiwa’s Chief Press Secretary, Ebenezer Adeniyan, announced the development in a statement on Wednesday, describing it as a “strategic milestone toward sustainable industrialisation and long-term economic stability.” According to the statement, the Sunshine Infrastructure JV comprises Backbone Infrastructure, MJ Care Investment Finance, China Harbour Engineering Company (CHEC), and Honeywell OUP. “This investment marks a new dawn for Ondo State. It will fast-track industrial development, attract more investors and create jobs for our people,” Governor Aiyedatiwa said. He assured the investors of his administration’s commitment to transparency, a business-friendly environment, and the protection of their investments, adding that his government’s policies were deliberately structured to promote ease of doing business. Project Overview The Ondo refinery project, to be located within the proposed Sunshine Free Trade Zone, will include large-scale storage, transport, and export infrastructure designed to position Ondo as a regional refining and logistics hub. The funding package, reportedly valued at NGN71.8 trillion ($50bn), follows the successful execution of a Memorandum of Understanding (MoU) between the state government and the consortium through the Ondo State Investment Promotion Agency (ONDIPA). Backbone Infrastructure Nigeria Limited, the lead Nigerian partner, said the project had evolved from an earlier 100,000-barrel-per-day concept—estimated at $15 billion—to the current 500,000-bpd integrated development, reflecting its expanded capacity and infrastructure scope. Global Partners and Scale China Harbour Engineering Company (CHEC), a subsidiary of China Communications Construction Company, is expected to serve as the engineering, procurement, and construction (EPC) partner, while Honeywell OUP, a private real estate and industrial arm of the Honeywell Group, will contribute expertise in industrial estate development. NEFEX Holding Limited, a Canadian strategic partner, will also participate in financing and project coordination across the energy and logistics value chain. From Vision to Execution Managing Director of the Sunshine Infrastructure JV, Mr. Henry Owonka, said the initiative had moved “from conception to execution” through consistent collaboration with ONDIPA and other state agencies. “The Sunshine JV is not just an investment; it’s a development framework that will transform industries, strengthen communities, and improve livelihoods,” Owonka stated. He noted that the project’s initial valuation of $30 billion was increased to $50 billion to accommodate expanded infrastructure and community-driven programmes, including education, local employment, and rural development. When completed, the refinery is expected to supply petroleum products both domestically and internationally, boosting Nigeria’s refining capacity and reducing dependence on imports.
