Female here.

What on earth are you doing with him naked? That already makes it a friends-sorta-with-benefits deal. It's definitely sending mixed messages.

That said... he should respect the fact that you've said you don't want to have sex with him. If that's all he seems to want, is he really a friend?

My bf and I spend most of the days we hang out not having sex. Not that we don't love to have sex with each other... we just enjoy doing other things! We never really talk about it at all, and even in bed we talk about things totally not related to sex.

There's something referred to as "Nice Guy" Syndrome. You may want to read about it a bit.

All said though... you need to make the boundaries clear. If you're JUST friends and that is all that you want from him, then don't be naked around him and don't hold each other close or whatnot. That's not really what people who are just friends do. Friends with benefits yes... but just a simple friendship? I have a lot of close male friends.. and while I'll give them a hug after not seeing them for ages, or they've given me hugs if I've been crying... that's it.