How multinational and local investors in Ogun are shaping Nigeria’s industrial revolution By Seyi Bakare
When the Ogun State delegation led by Governor Dapo Abiodun embarked on an investment promotion trip to China late August, it was not the first time a Nigerian governor would court foreign investors. But what followed that mission marked a turning point in how the “Gateway to Nigeria” is redefining subnational economic diplomacy.
From Taiwan to Tunisia, Morocco to Qatar, and Brazil, multinational corporations have since signified interest in the state’s energy, agriculture, and oil and gas sectors — a development that has begun reshaping the state’s industrial geography and economic outlook.
What does the global partnerships mean for Ogun’seconomic outlook?
The governor’s visit to China opened the door to bilateral engagements with several Asian firms. Notably, the China National Electric Engineering Company (CNEEC) signed a memorandum of understanding (MoU) with Ogun State to explore investments in renewable energy and power infrastructure to support the state’s growing industrial clusters.
At Inspur Group, one of China’s largest ICT firms, discussions centred on expanding Ogun’s digital innovation ecosystem and building capacity for the Ogun Tech Hub. “Our conversations with Inspur were focused on meaningful collaborations that will drive knowledge exchange, create opportunities, and strengthen our digital economy,” said Governor Abiodun’s media adviser, Kayode Akinmade in a press statement in September.
This aligns with the state’s ambition to become West Africa’s digital manufacturing and innovation hub. Similarly, the Taiwan External Trade Development Council (TAITRA) and Moroccan Investment Development Agency initiated follow-up discussions with the Ogun Investment Promotion and Facilitation Agency (OGUNINVEST) on establishing light manufacturing and agri-processing plants across Sagamu, Ijebu-Ode, and Ewekoro.
By September 2024, delegations from Tunisia and Qatar had also visited Abeokuta to explore opportunities in fertilizer production and agro-technology, underscoring Ogun’s emergence as a global investment hub. According to the Commissioner for Finance and Chief Economic Adviser to the Governor, Mr Dapo Okubadejo, “Our China mission became a catalyst. It opened the eyes of many investors to the enabling environment we’ve quietly built here. The result is the influx we’re now seeing from Asia, North Africa, and South America.”
How Dangote and other indigenous players expand industrial footprint
Amidst the number of foreign investments that have been attracted, indigenous giants continue to anchor Ogun’s industrial rise. The Dangote Group, for instance, has expanded its operations in Ewekoro and Sagamu, with new logistics hubs and subsidiary manufacturing facilities under development since 2023.
Aside from the Agbara Industrial Estate, on the Lagos–Ibadan Expressway, the industrial corridor stretching from Mowe to Ibafo now hosts dozens of medium and large-scale firms — from CWAY Nigeria Limited to Nestlé Nigeria, Rite Foods, and Lafarge Africa. Similar growth is visible on the Abeokuta–Sagamu and Ijebu-Ode–Epe highways, where a mix of agro-allied, ceramics, and steel industries are springing up. The highways have become industrial arteries, breeding new facilities in Sagamu, a development that has made Ogun become the preferred destination for expansion outside Lagos.
At the heart of Ogun’s industrial renaissance is the Ogun–Guangdong Free Trade Zone in Ijebu-Ode, established through a Nigeria-China partnership. The 2,000-hectare enclave, operational since 2007 but recently revitalised under Abiodun’s administration, now hosts over 60 Chinese and local companies. The zone exports ceramics, steel, and household equipment to West Africa and beyond. Officials say an expansion plan worth $350 million is underway to accommodate electronics, automotive, and textile clusters.
According to OGUNINVEST’s 2024 mid-year report, over 140 new factory registrations were recorded between January and June 2024 — a 32% increase compared to the same period in 2023.
Ties with China and prospects in industry and infrastructure
In Shandong, Governor Abiodun secured a $50 million expansion deal with Lee Group, which will grow its detergent and food-processing plants in Sagamu. The project, targeting exports to the US and Europe, reinforces Ogun’s status as a manufacturing hub. “This expansion will consolidate their market leadership and create jobs across the value chain,” Mr Abiodun said.
The governor also reached an agreement with Shandong LuqiaoConstruction Company, under the Shandong Hi-Speed Group,for road, bridge, and power projects. “This collaboration positions Ogun as Nigeria’s hub for modern infrastructure,” Governor Abiodun noted. The deals strengthen existing projects like the Sagamu Interchange–Abeokuta Expressway, Gateway Cargo Airport access road, and the Agbara Free Trade Zone, which all benefit from proximity to the Lekki–Epe corridor and proposed Lagos–Calabar Coastal Highway.
Power and port projects to redefine industrial growth
In Jiangsu Province, Mr Abiodun signed a partnership with Cteec, a Chinese energy firm, for a 3MW power plant at the Gateway International Cargo Airport and improved transmission across industrial zones. “This marks another step toward building the energy backbone to sustain Ogun’s industrial growth,” he said. Cteec, operating 100MW in Nigeria, will base its West African expansion in Ogun.
In Rizhao, Governor Abiodun met Mayor Wang Xinsheng to advance the Olokola Deep Sea Port, a key part of Ogun’s blue economy plan. “Olokola will position Ogun as Nigeria’s leading maritime hub,” Mr Abiodun said. Together, these partnerships strengthen Ogun’s road, rail, air, and sea infrastructure — cementing its emergence as Nigeria’s most connected investment destination.
Strengthening Energy and Agricultural sector with Algeria’s partnership
The governor’s recent visit to Algeria added another layer to Ogun State’s international investment drive, focusing on energy, agriculture, and oil and gas partnerships. In meetings with Algerian government officials and private sector leaders in Algiers, discussions centered on leveraging Algeria’s experience in renewable energy, fertilizer production, and large-scale irrigation to boost Ogun’s agricultural capacity.
According to Governor Abiodun, the talks opened pathways for joint ventures in gas distribution and agro-processing, particularly within the Olokola corridor and the Gateway Agro-Cargo Airport economic zone. “These partnerships will not only enhance food production and energy access but also deepen industrial integration between Africa’s leading economies,” he said.
The Algeria engagement aligns with the state’s broader agenda of diversifying foreign partnerships beyond Asia, reinforcing Ogun’s image as Nigeria’s most investment-ready subnational economy.
Ease of doing business: hassle-free land acquisition, documentation, and fast-track reforms
One of Ogun’s most talked-about success stories lies in its ease of acquiring land and business permits. Since 2022, the state introduced the One-Stop Investment Centre (OSIC), which allows investors to secure land documentation, survey approval, and Certificates of Occupancy (C of O) within 30 days. Unlike the cumbersome bureaucracies seen elsewhere, the Ogun model provides subsidised land rates for manufacturing and agro-processing firms.
The state’s OgunInvest platform and its GIS-enabled Land Bank covering 300,000 hectares allow quick verification and approval for land titles and permits. According to the Special Adviser on Investment Promotion, Mr Akinlade Olatunji, “We deliberately reduced our land cost by nearly 40% for investors that create jobs and local value chains. That’s what sets Ogun apart.”
“Our administration believes that simplicity attracts prosperity. We have made it easier for investors to start, expand, and export from Ogun,” Governor Abiodun said during a recent economic showcase at the Intra-African Trade Fair (IATF) in Algiers, Algeria. This has placed the state ahead of others in subnational ease-of-doing-business rankings and made it a model for public-private collaboration.
Rising Internally Generated Revenue
The policy, launched in March 2022, has been credited with attracting large-scale land acquisitions for industrial parks in Magboro, Kajola, and Iperu-Remo, directly boosting the state’s Internally Generated Revenue (IGR). Ogun’s aggressive investor drive is also translating into stronger fiscal outcomes. The state’s Internally Generated Revenue (IGR) has witnessed a steady rise, driven by land transactions, business registrations, and industrial levies.
Officials at the state’s Ministry of Finance confirm that new investments in manufacturing and logistics alone account for a significant portion of the IGR increase in the last two fiscal years. Figures from the National Bureau of Statistics (NBS) show that Ogun State’s IGR rose from ₦100.7 billion in 2022 to ₦140.1 billion in 2024, a 39% increase attributed mainly to land transactions, factory levies, and logistics taxes.
The Chairman, Ogun State Internal Revenue Service (OGIRS), Mr Olugbenga Olaleye, explained that the steady flow of new industrial registrations has “expanded our tax net and created predictable income lines.” He added: “We’ve achieved this without raising taxes — it’s purely from new business activity. The confidence investors have in Ogun’s governance structure is paying off.”
Harnessing infrastructures to boosts Ogun’s logistics and dry port plan
The commissioning of the Lagos–Ibadan Standard Gauge Railway in June 2021 by former President Muhammadu Buhari has proved pivotal for Ogun’s logistics economy. The rail line passes through several Ogun industrial zones — including Kajola, where the Kajola Inland Dry Port is taking shape. The Nigeria Shippers’ Council (NSC) confirmed in August 2024 that preliminary works at Kajola have been completed, with the dry port expected to handle 100,000 Twenty-foot Equivalent Units (TEUs) annually once operational.
Freight operators in Sagamu and Ibafo now leverage the rail system to transport raw materials and finished products faster and cheaper, further reducing pressure on Lagos’ overloaded logistics routes.
Coastal Prospects: Roadmap to Ogun new commerce
Ogun’s southern flank, bordering the Atlantic Ocean, is emerging as a new frontier for commerce. In late 2023, the state inaugurated the Ogun Coastal Development and Maritime Project, aimed at exploring small-scale seaport, fisheries, and shipping operations around Ogun Waterside and Tongeji Island. The initiative aligns with the state’s vision to diversify beyond land-based industries.
Ogun’s reach extends into the Lekki–Epe industrial corridor, which hosts the Dangote Refinery and Lekki Deep Sea Port. With shared boundaries along Ijebu-Imusin and Epe, Ogun stands to gain from the value chains in petrochemicals, logistics, and exports emanating from the corridor. The Lagos–Calabar Coastal Highway, currently under construction, will further link Ogun’s coastal belt (through Ogun Waterside and Ijebu East) to Lekki, Ondo, and the South-South.
Analysts say this road will shorten travel times, open up the state’s fishing and tourism economies, and create a direct trade route to southeastern ports. Experts say this move could position Ogun as a maritime partner to Lagos, easing the commercial traffic around Apapa while connecting local producers directly to global shipping routes.
Investors’ reality
For stakeholders, Ogun’s rise did not happen overnight. The Ogun State Business Summit 2023, held in Abeokuta, was one of the key forums where the government unveiled its Industrial Policy Framework (2023–2030) — a document outlining incentives for investors, including tax holidays, land rebates, and infrastructure partnerships. A Qatari business delegation led by the Qatar-African Business Council in April 2024 described Ogun as “a regional model for pragmatic subnational investment policy.”
A Gateway State indeed
Today, Ogun is no longer just Lagos’ industrial backyard. It has become a model for subnational economic transformation — a place where geography, governance, and global partnerships converge. Governor Abiodun, speaking during the 2024 Ogun State Investors’ Forum in Abeokuta, reaffirmed his administration’s goal: “Our mission is simple — to make Ogun the industrial capital of West Africa. We are building roads, rails, and rules that work for investors. That is the future we are preparing.” From Kajola’s dry port to Ewekoro’s cement plants, from Sagamu’s logistics parks to Ogun Waterside’s coastal trade, the story of Ogun State today is one of renewed ambition — and a clear signal that investment, when nurtured with vision and efficiency, can become the new face of subnational development in Nigeria.