Nigeria Moves to Expand Refining Capacity with Proposed 500,000 bpd Facility in Ondo State

Nigeria is moving to expand its domestic refining capacity with the proposed construction of a 500,000 barrels-per-day (bpd) refinery in Ondo State, according to Backbone Infrastructure Nigeria Limited (BINL), the project developer. The facility will be sited at the Sunshine Industrial Park in Ogboti and is expected to reduce reliance on imported petroleum products.

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The project, which will roll out in phases starting with a 100,000 bpd module, is being developed in partnership with the Nigerian National Petroleum Company Limited (NNPC) and the Ondo State Government, through the Ondo State Development and Investment Promotion Agency (ONDIPA). According to BINL, completion of the first phase is projected within 48 months.

Authorities say the refinery will operate within a broader industrial zone, incorporating a Free Trade Zone aimed at attracting foreign direct investment and supporting export-oriented downstream operations. 

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It is expected to complement the 650,000 bpd Dangote Refinery and contribute to Nigeria’s total projected refining demand, which exceeds 770,000 bpd in the first half of 2025.

The initiative supports the federal government’s energy security agenda and aligns with provisions under the Petroleum Industry Act that prioritize crude supply to local refiners.

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