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Ogun state, emerging largest industrial hub of Nigeria, has attracted hundreds of billions dollars investments both within and outside the shores of the country, in the last seven years as investments in eleven sectors of the nation’s economy where all new investments, especially foreign direct investments, were domiciled, grew from 304 manufacturing industries to about 442 companies, which represent a 68.7 percent increase.
Although, investment documents which BusinessDay obtained from Ogun State Ministry of Commerce and Industry show that 304 companies either established new plants or expanded the existing ones in the last seven years of Ibikunle Amosun-led administration in the state, multinationals such as Dangote Cement, Western Metal Products Company Limited, Procter and Gamble, Unilever PLC, Nestle Nigeria PLC, Sona Group, Lafarge Africa PLC, Goodwill Ceramic Nigeria Limited, Nampak Bevcan Packaging, Hayat Kimyat, Shaaxi Pharmaceutical, May and Baker, International Breweries have so far inveated over $12 billion in the State.
Investment records show that Dangote Cement, Ibese invested about $2.3 billion in 2011 and 2014; Nestle Nigeria injected $126.2 billion for new Maggi plant at Flowergate factory at Sagamu interchange in 2011, Distribution Centre and Ready to Drink Millo plant in Agbara in 2013 and 2018 ; Lafarge Africa PLC spent $897 million on Cement plant II tagged, ‘Lakatabu’ located at Ewekoro in 2011 and 220-megawatts gas-fired power plant; Unilever PLC invested $212.2 million in new liquids and Blue band factories, while Procter and Gamble invested $300 in new plant in Agbara.
Western Metal Products Company Limited (WEMPCO) invested $2.2 billion in steel rolling mill, ceramic tiles and nail production factories in Ibafo; Chinese Goodwill Ceramic Nigeria spent $200 million on Ceramic plant as well as Shaaxi Pharmaceuticals invested $1 billion, both located in Ogun Guangdong Free Trade Zone in Igbesa; Nampak Bevcan Group in Agbara invested $650 million in three production lines where cans, glass bottles and bevarage packaging are produced; Turkish Hayat Kimya also invested $100 million in Agbara; May and Baker invested $26.4 million in Pharmaceutical factory in Ota.
Sona Group has invested about $2.5 billion in chains of investments, sparing ethanol plant, distilleries, food and beverages as well as packaging plants in the last seven years. Belgian-Brazilian AB InBev subsidiaries which is a merger of three breweries, namely, Interfact Beverage Limited, International Breweries and Pabod Breweries, according to Governor Ibikunle Amosun, is investing $2 billion at soon-to-be-operational largest breweries at Sagamu interchange, just as AGRITED invested $13 million in poultry and dairy foods production at Ajebo in Obafemi-Owode Local Council Area.
Unprecedented increase in the manufacturing firms in Ogun state, including investments in food, beverage and tobacco; metal and machinery, wood, paper and printing, non-metallic minerals, textiles, leather and apparel; chemicals and pharmaceuticals; petroleum, coal, plastics, rubber and foam; electrical equipment, appliances and components, automobile, generators and heavy duty machinery; furniture, among others, according to BusinessDay surveys, show that Ogun state runs quick and discounted policies on land, business permit and other documentation essential for investments.
The findings reveal that various categories of rebates are placed on land acquisition for different purposes, which include 60% rebate on manufacturing land; 80% on agricultural land; and 40% on all other commercial activities. These are coming in addition to quick and discounted issuance of certificates of occupancy, business premises permits and other documentations as well as unhindered access and proximity to raw materials such as limestone, gypsum and clay for cement and ceramics industries; lead and copper for electrical and electronics industries.
Ethanol, produce and agro-allied concentrates being used as raw materials by food, beverage, chemical and pharmaceutical as well as tobacco factories; logs timbers are used by the furniture, wood, paper and printing industries; cotton as well as hides and skins serve as raw materials for the production of textiles, leather and apparel, just as latex and other petroleum products are used for automobile tyres, plastics, foam and rubber.
Above all, Ogun state government was able to launch Security Trust Fund in 2012 where all the firms that operate in the state supported government on the formation of joint security forces – Nigerian Army, Police, State Security Services, Nigeria Security and Civil Defence Corps as well as state-owned Vigilance Service; equipment and security empowerment of all them with about 125 Hilux vans, armoured personnel carriers, guns and other hardwares used to combat armed banditry across the length and breath of the state.
All these incentives coupled with proximity of Ogun state to Lagos and West African market attracted hundreds of manufacturing and service-based firms as well as operators of micro, small and medium-scale enterprises that are trooping into the state, investing hundreds of billion dollars, which have also increased internally generated revenue from paltry of N730 million to about N7 billion monthly.
Another incentives to manufacturers and investors are the laying of gas pipelines by both Nigerian Gas Company and West African Gas Pipelines Company,
covering major industrial estates from which gas is drawn to power major manufacturing companies, while some other manufacturing like Lafarge Africa and Dangote Cement Plant at Ibese use alternative energy such as biomas, palm kernel shells and coal to generate energy for industrial use.
The State government has also signed an agreement with eight firms on generation and distribution of independent power across three senatorial districts, totalling 491 megawatts, costing $497.6 million under Light Up Ogun Project. This is coming in addition to already established State-owned independent power project located at Onijanganjangan in Ewekoro local government area.
Speaking on the economic feats achieved in the last seven years, Governor Ibikunle Amosun declared the State is benefiting massively, saying that a total of 304 firms had either established new plants or expanded the existing ones in the last seven years, and 148 of such firms had each invested between $200 million and $2 billion, while remaining 156 have invested between $50 million and $200 million, which had also transformed into unprecedented increase in internally generated revenue.
The governor added that over 50 high networth individuals in terms of personal income tax are now remitting their taxes which are in excess of N10 million each to the State government as against the two persons wrongly quoted by the Federal Inland Revenue Services (FIRS), saying government intends to cover more high networth individuals in the coming years as N10 billion internally generated revenue is being targeted monthly, and therefore, government intends to consolidate gains recorded and accelerate growth.
Speaking ahead of 2018 Ogun State Investors’ Forum tagged, “Consolidating the Grains, Accelerating Growth” which centred on Agriculture, Industry and Technology in Abeokuta, Governor Amosun said, “In the manufacturing sector in Nigeria, we have diversified the economy for us to grow in Ogun state. The first thing, we have demonstrated thus with the investors and entrepreneurs. We have created an enabling environment for businesses to thrive.
“So, about 148 Companies have established shops and invested between 200 million dollars and 2 billion dollars in the last two years. Everyday, new investors come to us in a bid to establish their businesses here in Ogun State. But we want to take development and growth in Ogun state beyond the industrial hub of the country.
“When we came on board, we came with five cardinal programmes and thank God today, Ogun state is out of the doldrums. Things are now taking shapes. In the comity of states, in terms of IGR, Ogun State is second in position. Initially, upon assumption of office in 2011, we were generating N730 million as IGR monthly but now, we are knocking N7 billion monthly. We have the potentials. We have large expanse of land. With agriculture, we want to leverage on value chains.
“Our aim is to consolidate all gains and to accelerate growth. We want to concentrate on what we have achieved. We want to exploit specific growth. We will collaborate with investors and entrepreneurs. In totality, we are looking at human endeavours. Of all these giant strides, we are proud of these developments in Ogun state.”
Also, Bimbo Ashiru, Commissioner for Commerce and Industry declared that the World Bank Reports on Ease of Doing Business as well as Manufacturers Association of Nigeria surveys showed that 75% of foreign direct investments that came to the country between 2016 and 2017 were domiciled in the state which gave veritable records on Ogun state becoming largest industrial hub in the country as State has moved from 35th position in the Ease of Doing Business in 2011 to one of the best four states in the country.
“It is a verifiable fact that Ogun state is the largest industrial hub of the country with 304 manufacturing companies we are able to secure in the last seven years, and 225,000 micro, small and medium-scale enterprises. Why do we have all these achievements? The answer is where doing a right thing in terms of investments. We provide enabling environment for business to thrive, having understood the economic potentials we have as a State of the Federation.
“For instance, in mining and solid minerals, Ogun state produced 16,376,547.50 tons of solid minerals out of a total of 43,495,423.12 tons of solid minerals, Nigeria produced in 2016, representing 37.65% of total tons produced all the 36 states. That is why we are the largest producers of cement in Nigeria. Dangote, Lafarge, Purechem and other cement companies in Ogun state produce over 20 million metric tons of cement per annum”, Ashiru explained.
He added that investments which were made in terms of security, infrastructure and other economic variables needed for economic growth and development were provided, and that helped drive the State economy to the current lofty height and more investments would also be made to consolidate gains already recorded and accelerate further economic growth and development.
Corroborating Ashiru on massive solid minerals endowments numbering about twelve industrial solid minerals, including limestone, gypsum, glass sand, iron ore, bitumen, granite, among others, the richest man in Africa, Aliko Dangote, who prophesied in one of his past interviews with BusinessDay that Ogun state would become industrial hub of Nigeria going by all its economic potentials and its proximity to Lagos and West African markets, that put it at an advantage position among the comity of states.
Dangote, who has the second largest cement plant in Ibese, Yewa North Local Government Area, disclosed,
“All the 96 percent of raw-materials we use are here in Ibese, the only thing we import is gypsum, apart from gypsum we don’t really import anything. Gypsum is 4 percent we are using; we produce everything out of local raw-materials.”
Another revelation came from Nigeria Customs Service (NCS) that spoke through Ogun State Area Command Controller, Sani Madugu, who revealed that the State makes an average of N300 million monthly from excise duties.
He said, “On excise duty, we are making an average of N300 million monthly in Ogun state due to a large number of manufacturing companies operating in the State. It is no doubt that Ogun state is the industrial hub of the country and as a result of that, we make huge excise duty, which can even increase anytime because of new industries, but we must also say that some companies are not paying, but we will soon take action.”
RAZAQ AYINLA
