The Ondo State Government has signed a Memorandum of Understanding (MoU) with Backbone Infrastructure Limited for the development of a 500,000 barrels-per-day oil refinery and a free trade zone in Igbotiri, Ilaje Local Government Area.
The MoU signing ceremony took place at the Governor’s Office in Akure, with the Secretary to the State Government, Dr. Taiwo Fasoranti, representing Governor Lucky Aiyedatiwa. Fasoranti described the project as a strategic investment that will stimulate the state’s economy, create jobs, and help reduce crime.
Vice President of Legal and Corporate Services at Backbone Infrastructure, Barr. Wale Adekola, expressed gratitude to the state government, assuring of the company’s commitment to delivering the project. The company’s Managing Director/CEO, Engr. Henry Owonka, noted that the refinery and trade zone would come with critical infrastructure, including roads, terminal storage tanks, and other facilities that would significantly transform the state’s industrial landscape.
According to the MoU, Backbone Infrastructure will hold a 65% equity stake in the refinery project, with the Ondo State Government holding 20%, and the Nigerian National Petroleum Company Limited (NNPCL) owning the remaining 15%.
The Backbone team at the signing was led by Board Member Dr. Steve Dike, representing Chairman Senator Ken Nnamani, alongside top company executives. Also present were Ondo State’s Attorney General and Commissioner for Justice, Kayode Ajulo (SAN), and officials from the Ondo State Development and Investment Promotion Agency (ONDIPA).
The state government reiterated its commitment to providing an enabling environment for the successful execution of the project, which is expected to become a major economic driver in the region.
