Ondo State is poised for an economic turnaround as the government is formalising a $50 billion
investment agreement with an international consortium under the Sunshine Infrastructure joint
venture (JV) to position the state as a major industrial hub in Nigeria.
The deal involves global partners such as Backbone Infrastructure, MJ Care Investment Finance, China Harbour and Honeywell OUP under the Sunshine Infrastructure Joint Venture.
The JV had secured over $50 billion for the development of a 500,000 barrels per day (bpd) refinery and a 1,471-hectare Sunshine Free Trade Zone in Ilaje Local Government Area of the
state.
The funding followed the successful execution of a Memorandum of Understanding (MoU)
between the joint venture and the state government through the Ondo State Investment
Promotion Agency (ONDIPA).
Governor Lucky Aiyedatiwa, in Akure, described the partnership as a strategic step towards
sustainable industrialisation and long-term economic stability.
“This investment marks a new dawn for Ondo State. It will fast-track industrial development,
attract more investors and create jobs for our people,” the governor said.
Ondo State, with a subnational GDP of $12.63 billion as of mid-2024, ranks as the seventh
wealthiest state in Nigeria by GDP. The state’s economy is primarily driven by agriculture and
the oil and gas sector, which together generate about 90 per cent of its GDP, according to data
from ONDIPA.
Governor Aiyedatiwa assured the investors of his administration’s commitment to transparency,
a conducive business climate and full protection of their investments.
He noted that his government had been deliberate in implementing policies that promote ease of doing business, adding that the project would stimulate productivity and economic growth across multiple sectors.
Henry Owonka, the managing director of Sunshine Infrastructure JV, said the initiative had
progressed from conception to execution through consistent engagement with ONDIPA,
explaining that the project’s initial valuation of $30 billion was reviewed to $50 billion following
an expansion to cover broader infrastructure and community-driven programmes.
“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 said the
refinery will supply petroleum products locally and internationally, while its corporate social
responsibility (CSR) focuses on education, local employment and infrastructure development in
surrounding communities.
The investors would introduce social programmes focusing on healthcare, youth empowerment
and skills acquisition to ensure inclusive growth. Also, the group said they had already carried
out due diligence before arriving in Ondo. The consortium said their oil refinery and free trade
zone investment are expected to drive industrial, agricultural, aviation and healthcare
development in Ondo.
According to Ken Nnamani, chairman of the consortium and former Senate President in Nigeria,
the aim of the group choice of Ondo State is to reciprocate the state’s support as well as ensure a full transformation of the state, adding that the consortium’s partners, who had visited project
sites, were excited and ready to contribute to the state’s economic growth.
The state government in a separate meeting with Governor Aiyedatiwa, was commended for his
leadership role in the project, which stakeholders described as a model of credible public-private
partnership.
