Ogun State government has gone further in its investment promotion and industrial growth drive. The latest move towards the creation of business-friendly environment is the recent Memorandum of Understanding (MoU) signed with the Confederation of General Employers of Morocco (CGEM), as well as a partnership arrangement reached with Ambar Energia, a leading Brazilian energy company, to collaborate on power generation and distribution. These two proposals are significant steps aimed at enhancing sustainable investment and industrial growth. Among other benefits, the collaborative effort will improve the state’s power infrastructure, ensuring a stable and reliable energy supply for industries and households. With proper implementation of the agreement, the initiative is expected to boost economic growth, create jobs, and increase investment opportunities in the State.
As important as power is to industries and domestic consumers Nigeria has not been able to overcome the daunting challenges of generation, transmission and distribution. The country’s power generation, while currently showing some progress, still faces challenges with a significant gap between demand and supply, resulting in high cost of production. The good news is that the states can now generate, transmit and distribute power independently to consumers. Some proactive governors, including Governor Abiodun, have made significant progress in their Public-Private Partnership (PPP) arrangements to boost power supply in their respective states. Ogun State is one of them. Not only will such initiative support the growth of industries, it will also stimulate economic development.
By the terms of reference, the signing of Memorandum of Understanding with CGEM is meant to address the deficiency in power supply to the state’s 6,000 industries and other businesses. By so doing, the state government aims to fostering an economy that promotes growth, equity, and resilience through sustainable development plans. The collaboration with Ambar Energia is equally meant to sustain the effort to drive economic growth and development in Ogun State. This has been part of the focus of the Abiodun’s administration on creating a favorable business environment, attracting investments, and promoting industrial growth.
With the signing of MOU with CGEM, Ogun State government is expected to benefit from the experience of reforms which have helped Morocco to achieve significant success in the areas of solar power, education, technology, manufacturing, agriculture, and a host of others.
Governor Abiodun, while signing the agreement on behalf of the state, noted that Morocco had become an emerging leader in solar energy, attributing the success to such initiatives as a 30 percent subsidy incentive for investors and 60 trade agreements with different countries across the world.
Abiodun further stated that the country had transitioned from importing to exporting electric vehicles to Europe and manufacturing parts for aircraft manufacturers, expressing assurance that the success story would be replicated in Nigeria with the arrival of the Confederation of General Employers of Morocco to establish operations in Ogun State.
He said: “We hope that in our partnership we can unlock all the potentials and maximize it. We want to learn from you how you perfected hydro, solar, and gas energy, presenting the right mix that, of course, brings down the cost of energy.
“We identified agriculture, agribusiness, and agricultural technology, in which you are very advanced. Morocco today is the largest producer of fertilizer on the continent and one of the biggest exporters of fertilizer. I recall that you were informed of the plan to establish a massive fertilizer plant in Nigeria. We hope that we can bring that plant to Ogun State.
“Being an industrial state, we discussed manufacturing and industrial development, in which you’ve excelled. How do we partner? How do we learn from you so we are not starting from scratch? How do we develop technology together? How do we collaborate with companies in Morocco to bring the automobile industry to Ogun State, where we know that from here, you can easily ship vehicles to all other countries in Sub-Saharan Africa?”
The Governor disclosed that the state already had a Special Economic Zone at the Gateway Agro-cargo International Airport, which would serve as a Free Trade Zone. According to him, by bringing manufacturing and agricultural companies to the state, the partnership will focus on technology transfer.
“We have issues with generation capacity, we have issues with efficient and effective distribution, we have issues with transmission, and we know that you have succeeded in that area in Morocco. We discussed how we can collaborate to ensure we generate enough electricity for the state under our Light-Up Ogun Project,” he added.
Speaking further on infrastructure, the Governor stressed the need to share experience on port development. “Ogun State has a designated port area called Olokola, which is meant to be the deepest seaport in Nigeria. The desire to construct the port has been present for quite some time, and we would like to see this happening under our watch, even if it is a temporary berth port in the meantime,” he stated.
Mr. Ali Zerouali who signed for the Moroccan side, expressed the readiness of his organisation to partner with the state in the automobile, agro-food industries, and the education sector. He said the partnership would strengthen the cordial relationship and enhance economic ties between the two countries.
The same optimism also greeted the strategic partnership alliance between the Ogun State government and Ambar Energia to establish power plants across the state. Speaking while receiving a delegation led by its President Marcelo Zanatta, at the Governor’s Office in Oke-Mosan, Abeokuta, Abiodun harped on the importance of Ogun State as Nigeria’s industrial capital, promising to take full advantage of the constitutional amendment that decentralizes power generation, allowing states to produce and distribute electricity independently.
“The energy needs of our state are enormous. The current allocation is grossly inadequate. With this partnership, we aim to bridge that gap and unlock the full industrial potential of Ogun State,” the governor said.
Addressing the specifics, the Governor reveals that Ogun and Lagos states currently consume about 40 percent of Nigeria’s 6,000 megawatts, adding that demand is projected to rise to 45 percent of the megawatts by 2030. To sustain its competitive edge, he submitted that Ogun is rapidly growing industrial cluster-such as Ijebu-Ode, Abeokuta, Atan-Agbara, Remo, Imeko-Afon, and Aworo—needed robust and localized energy solutions.
“We’re expanding our current power infrastructure. A plant that once generated just four megawatts is being upgraded to produce 30 megawatts in its first phase-primarily to serve government offices and residential areas. But this is merely a drop in the ocean. Our goal is to replicate such captive power plants across the three senatorial districts of the state,” he added.
It is worth noting that the state has abundant natural resources like gold, lithium, bitumen, silica, limestone, and cement which, according to Abiodun, require stable power supply for maximum economic benefits.
He also disclosed that construction would soon begin on Africa’s largest garment production facility, to be located at the Special Agro-Processing Zone near the Gateway International Airport, which alone will require 300 megawatts of electricity to operate.
Commending Ambar Energia-ranked among Brazil’s top five energy firms with 27 plants and a combined capacity of 4.3 gigawatts.
Governor Abiodun, therefore, expressed confidence in the firm’s technical capacity and commitment to collaboration.
“Our government believes in enabling private sector growth. We’re here to create the right environment for businesses to thrive because the government doesn’t do business—it facilitates it. As businesses grow, they employ people, and that brings shared prosperity,” he stated.
Marcelo Zanatta, President of Ambar Energia, expressed readiness to work with the state in developing sustainable energy solutions, stating that his team had already visited critical infrastructure sites, including the Gateway Agro-cargo International Airport, Olorunsogo Power Plant, and the Onijanganjangan Power Plant.
In a related development, Governor Abiodun also received a delegation from the JBJ, JBS, and SEARRA Group of Brazil, led by renowned agribusiness leader Jose Batista, to discuss potential investments in large-scale farming and food production.
Boosting of over 16,000 square kilometres of land, of which more than 12,000 square kilometres are arable, Abiodun said Ogun State offers vast opportunities for agricultural expansion. The governor put the number of registered farmers at over 200,000 actively engaged in diverse food crop production.
“We are establishing what will become the largest farmers’ market in Abeokuta. It will allow farmers to process and sell their products at affordable prices, right from the source. We also support them with inputs like tractors, land clearing, and linkages to reliable off-takers,” he said.
He also listed such as attractions as extensive road network, an integrated multi-modal transport system-including access by land, sea, and air-plus two major gas pipelines running through the state, which have made the state investment destination of choice.
As an incentive for enhanced agricultural production, he said N5.4 billion has so far been invested in farmer support and training.
He, therefore, urged the Brazilian conglomerates to take advantage of Ogun’s strategic location, rich resources, and investor-friendly environment.
In his response, Mr. Jose Batista expressed satisfaction with the state’s readiness and enthusiasm and extended an invitation to Governor Abiodun to visit Brazil to deepen investment ties.
Meanwhile, another recycling plant for the production of aluminium and copper ingots has been established in the state.
The Managing Director and Chief Executive Officer of Neveah Ltd, Mr. Ibidapo Lawal, disclosed this after a meeting with Governor Dapo Abiodun in his office at Oke-Mosan, Abeokuta.
Lawal noted that the multimillion-dollar recycling plant, when fully operational and at full capacity, would generate over $150 million annually and employ more than 500 people.
He said the plant would recycle aluminium scraps from car engines, cans, and other metals into ADC 12 and export them to car manufacturing companies in Asia, Japan, Indonesia, and a host of others.
He said: “The plant is situated in Mowe, and it will employ more than 500 people, thereby creating jobs locally and also contributing to the development of Ogun State and Nigeria as a whole. It will account for about 2.53 per cent of the entire non-oil export for Nigeria.
The governor attributed all these developments to the positive business climate fostered by his administration, assuring of his commitment to creating an enabling environment for innovative investors.
•Ogbonnikan writes from Abeokuta, Ogun State capital
