Investment Opportunities in Ondo State

THE MINERAL RESOURCES OF ONDO STATE

AN OVERVIEW OF INVESTMENT OPPORTUNITIES.

Ondo State is referred to as Nigeria’s 21st-century investment haven principally due to its rich endowment of mineral and natural resources. Ondo State is the largest state in south- western Nigeria with a land area of 15,820 square kilometres. The State has a relatively large population of about 4 million, signifying its potential as a high source of labour, management cadre and consumer market. The state has the longest coastline in Nigeria of 90km demonstrating a huge potential for beach resort based tourism.   Ondo State’s economy, which is the 13th largest in Nigeria, is dominated by oil and gas and cash crop production which jointly account for 90% of its Gross State Product (GSP). With N11.71 billion in Internally Generated Revenue (IGR) in 2014, Ondo State ranked 14th out of 36 States. The State is, arguably, the most peaceful State in the oil-rich Niger Delta region, boasting a calm political milieu and relatively peaceful coexistence among its various ethnic, sub-ethnic and religious groupings.   This fact makes her a most viable investment destination in Nigeria!

Mineral resources available for commercial exploration and exploitation in the State include the following: Crude oil, natural gas, bitumen, limestone, kaolin, granite, silica sand, ball clay, limestone, salt, etc. Ondo State is reputed to have one of the largest bitumen deposits in the world. In this regard, the State is second only to Canada. The emergence of the Akeredolu Administration, with its unwavering commitment to the development of the solid minerals sector, has resulted in the very first serious attempt at a meaningful exploitation of Ondo State bitumen resources.

A mark of this is the promised commitment by two industrial concerns, i.e South West Bitumen and the Dangote Group to commence operations by the end of the second quarter of 2018.   Current efforts by the State, in partnership with the Federal Ministry of Mines and Steel Development and private sector investors, have led to the issuance of four Bitumen exploration/ exploitation licences to the State. The State is willing to partner with private investors who are willing to operate these State-owned blocks.

TABLE 1: MINERAL RESOURCES OF ONDO STATE

The 90km coastline of Ondo State holds probably the purest deposits of beach sand silica in the world! Indeed, it was once the source of raw materials for a highly successful glass manufacturing industry at Igbokoda but which is now moribund because of poor quality management in later years. Same can be said of the once vibrant ball clay-based ceramic factory at Ifon! The granite products factories at Supare have however faired better and are operating successfully. Importantly, it is worthy of note that the Arakunrin Akeredolu led administration is fully committed to the immediate resuscitation/redesign of all industrial concerns that fall into the above category. These are factories that are based on the abundant mineral and agricultural raw materials in Ondo State and are ready for private sector participation to bring them back on stream.

Table 2: MANUFACTURING CONCERNS READY FOR PRIVATE SECTOR PARTICIPATION

Reasons to Invest in Ondo State

1.        Proximity to all six geopolitical zone of Nigeria and critical commercial arteries in the country

2.        Availability of abundant mineral and agricultural resources as raw materials for industrial-level production activities, such as granite, kaolin, ball clay, limestone, salt, bitumen, etc.

3.        Availability of low – cost labour

4.       Availability of high skill labour as Ondo State is home to six prestigious research Universities, including the nation’s best University of Technology.

5          Availability of dedicated industrial parks fully equipped for industrial manufacturing activities.

6          Availability of One- Stop professional pre-investment and post-investment services through Ondo State Development and Investment Promotion Agency (ONDIPA).

7          Availability of fiscal and monetary incentives such as basic infrastructure (roads and utilities), tax holidays etc.

8          Ondo State is the largest producer of cocoa in Nigeria Cocoa. Cocoa can be processed to produce cocoa butter, chocolates, beverages, etc. Other major agricultural raw materials include cocoa, palm produce, (and its various derivatives), woods, etc.

9.       Has 80% arable soil which facilitates large-scale production of cash as well as food crops.

10.        Has tree species used to produce the most exotic timber in Nigeria for construction and furniture making.

11.        Accounts for 12% of national crude oil reserve, with potential for activities in oil and gas production, modular refineries and product marketing.

12.       Ondo State boasts Africa’s largest deposits of Bitumen.

13.        Presence of a Free trade Zone with an oil and gas logistics base component and an export processing zone for light and heavy industries.

14.       Presence of a vibrant and fast-growing community of technology start-ups, especially at Akure, the State Capital.

15.        Availability of a functional local airport with a number of airlines connecting the State with the Federal Capital Territory (Abuja), and Lagos, the commercial nerve centre of the country. Also, there are fairly good road network and internet connectivity across the State.

16.       Its 90km coastline is the longest in Nigeria and can facilitate sea-based trading activities as well as beach resort based tourism.

Conclusion

The commitment of the Arakunrin Akeredolu led administration to the creation of an investor friendly environment is sign – posted by the establishment of Ondo State Development and Investment Promotion Agency (ONDIPA) which is a One-Stop centre for investment promotion and multilateral cooperation.   The ultimate aim of the State’s investment promotion programme is the improvement of the welfare of its citizens through employment generation, skills transfer, export promotion and development of infrastructure. As indicated above, the present administration of Arakunrin Oluwarotimi Akeredolu, the Governor of Ondo State, is more than ready to attract and keep investors through the provision of the appropriate enabling environment for their business concerns to thrive.