OGUN: Poised to be the largest Industrial Hub in AFRICA
April 29th, 2021
Ogun state was created in February 1976, the State borders the following states, Lagos to the south, Oyo and Osun to the north, Ondo, and the Republic of Benin to the west. The capital city is Abeokuta, and it is the most populous city in the state. Ogun State had a total population of 3,751,140 according to 2006 census, and it covers 16,762 square kilometers. Contrary to popular believes that Ogun state Is an unproductive land, the geographical location is blessed with as much mineral resources as it is with tourist attractions.
The State has six ethnic groups which are the Egba, the Ijebu, the Remo, the Egbado, the Awori and the Egun. The language of the majority of the people of Ogun State is Yoruba but this is however broken into scores of dialects. The Ijebus were the first Yorubas to have invented money made from cowry shells called ‘Owo Eyo’. It gained acceptance throughout Yorubaland but was later replaced by legal tender coins made from silver materials called ‘Pandora’ when the Europeans arrived.
Ogun is known for high concentration of industrial estates and being one of the major manufacturing hub in Nigeria. Some of the factories in Ogun state include Nestle, Lafarge Cement factory in Ewekoro, Memmcol in Orimerunmu, the Dangote Cement factory in Ibese, Coleman Cables in Sagamu and Arepo, Procter & Gamble in Agbara, just to mention few. In fact, the State is the largest producer of cement in Nigeria with 13 million metric tonnes annually, and Its extensive limestone deposit according to scientists can last for some five hundred years.
The cement factory in Sagamu is the largest cement factory in West Africa. Both this factory and Ewekoro Cement factory depend on the local lime stone resources for raw materials. The State has enormous industrial capacity. Its natural resources, manpower and geographical proximity to Lagos makes it a potential industrial zone to the nation. There are also other modern industries producing beer with high quality, bicycle tyres, ceramic goods, high quality clay bricks, carpet and clothing materials. Ogun State is today Nigeria’s industrial destination. A three-year data dealing with the direction of manufacturing and agro processing investments show that Ogun is competing with Lagos in new investments.
The State is blessed with many natural resources that include forest and water bodies as well as large quantities of mineral deposits, such as limestone, gypsum, bauxite, bitumen, feldspar, clay, glass sand, phosphate, kaolin, quartz, tar sand, gemstones, granite stone, and crude oil are available in large quantities. Its natural resources also include an extensive fertile soil suitable for agriculture and mineral deposits. The climate and soil of the state are suitable for the cultivation of a wide range of crops. The major food crops include rice, maize, cassava, yam and banana. The main cash crops include cocoa, kolanut, rubber, palm oil and palm kernels. Ogun is one of the largest producers of kolanut in the country. It also produces timber and rubber on a large scale.
Ogun has over 70 percent share of manufacturing investments in the country between 2014 and 2017 according to Data from the Manufacturers Association of Nigeria (MAN). In 2014, manufacturers invested N691.77 billion, out of which N514.87 billion went to Ogun State, representing 74.42 percent of the total. Out of the N180.12 billion invested in the manufacturing and agro-allied industries in Nigeria in the first six months of 2015, N128.3 billion went to Ogun, representing 71.23 percent. Ikeja and Apapa industrial zones got N15.74 billion and N6.98 billion, representing 8.7 percent and 3.9 percent share of the total respectively.
The main reason for the upward movement of investments to Ogun were tax and land rebates, which lowered production cost in the long run. It was easier and seamless to get certificate of occupancy (C of O) in Ogun.
The cost of doing business in the state has been better than Lagos, as taxes are fewer and space is still available. Manufacturing requires a lot of space, which Lagos does not really offer them currently.
More investments moved to Agbara, Igbesa, Abeokuta, Sango-Otta, Ibafo, Mowe, Ijebu-Ode and Sagamu industrial clusters, all in Ogun State.
In 2014 alone, new investors such as Shongai Technologies Limited, Ijako in Sango-Otta, Apples and Pears Limited, Ceplas Farms Limited, Greenlife Bliss Healthcare Limited, and Sumo Steel Limited, berthed Ogun. In the last three to four years, manufacturers have either moved from Lagos to Ogun or relocated their factories to the state, leaving only administrative offices in Lagos. Some of the companies that have done that include Fidson Healthcare, May & Baker, Pure Chemicals, Eagle Packaging, Nycil Limited, and Dufil, among others.
In conclusion, Ogun state has what it takes to become one of the largest industrial hub for Yoruba nation.
POWERED BY YORUBA PROFESSIONALS FOUNDATION (YPF)
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