Reasons Ogun State economy sustains competitive edge (OPINION)

Femi Ogbonnikan

Due to the combined effects of creative thinking and prudent management of resources, Ogun State, under Governor Dapo Abiodun’s administration for the umpteenth time, retained itself as one of Nigeria’s resilient and economically viable states amid the global challenges.

In governance, it takes a creative mind to identify opportunities for economic expansion to harness them for growth. If only people could open their eyes to see every state has its fair share of human and material resources to develop. What is lacking is the creative thinking of the ruling elite to fashion out a way to enhance revenue-generating capacity.

This is where Prince Dapo Abiodun stands out among others. Since he assumed office on May 29, 2019, he has shown an innate capacity for creativity by boosting the state’s internal revenue generation. As of today, Ogun is among the few states that can survive independently of the Federal Government’s allocation.

This is not rhetoric or hearsay.  The latest report released by the office of the National Bureau of Statistics (NBS) confirms the resilience of the state’s economy based on its sustained growth and enhanced revenue-generating capacity. According to the release, Ogun State increased its IGR in 2023 from N120.58 billion to N146.87 billion, made up of N71.67 billion in tax revenues and N75.19 billion.

In totality, the 36 states and the FCT collectively generated N2.43 trillion in Internally Generated Revenue (IGR) during the period, reflecting a 26.03 percent increase from the N1.93 trillion recorded in 2022.  Out of these figures, Lagos, FCT, and Rivers led in IGR collection, generating N815.86 billion, N211.10 billion, and N195.41 billion, respectively.

Ogun State closely follows among the seven other runners-up.  Ten (10) states recorded the highest IGR of N1.775 trillion collectively, representing about 73.1 percent of the total IGR generated by the 36 states and FCT. These states are Lagos, Rivers, FCT, Ogun, Delta, Edo, Kaduna, Kwara, Oyo and Akwa Ibom states in order of arrangements. It is important to note that seven of these top 10 states with the highest IGR are in the South as only three are from the Northern part of the country.

The significant achievement recorded by the state is as a result of the initiatives of the Governor to boost industrial growth through the creation of an enabling environment for both local and direct foreign investments (DFI). One of such initiatives is the Ogun State Investment Promotion and Facilitation Agency (OgunInvest) created by the administration.

As part of the dividends, only recently, an agreement was reached with the British High Commissioner in Nigeria, Mr. Richard Montgomery, to establish a five million dollar British battery recycling company in the state. When the company becomes operational, it will be the first of its kind in Africa, thus making the state the leader in battery recycling on the black continent.

This significant achievement is a clear testament to the Abiodun administration’s commitment to the objective of making the state the preferred as an investment destination of choice in Africa. And it is one of the dividends of the collaborative efforts of the Director-General of the ‘OgunInvest’, and his counterpart in the Bureau of Lands.

Montgomery confirmed this in his remarks, as he said, “It is really exciting that we received support from ‘OgunInvest’, and officials from the Bureau of Lands confirmed the Certificate of Occupancy (CofO). We can say that the investment will be about five million dollars, and we want Ogun State to be the place where this industry can grow.”

Looking into the future of the partnership, the High Commissioner added that his country would like to participate in energy, technology, tertiary education, agricultural processing, and also explore how to find more United Kingdom-linked companies to invest in the State. He disclosed that discussions were ongoing with the state team on how to proceed in the coming year.

The commissioner further stressed that his country was not only interested in what the state had achieved in the last five years but was also trying to identify business opportunities for his government and his country’s companies to invest in. With the milestone, the governor, Prince Dapo Abiodun can now beat his chest to say that his aspiration to lead Ogun State to achieving its manifest destiny as a leading industrial hub in Nigeria and beyond is becoming a reality.

Primarily, the vision of the Ogun State Investment Promotion and Facilitation Agency (OgunInvest) led by Abiodun as its Chairman is to firmly establish Ogun State as the industrial and logistics hub of Nigeria and the preferred investment destination in the region. Its mission is to create an investor-friendly environment that attracts and retains both domestic and international investments, thereby fostering economic growth.

The same objective also informed the land reform initiative of the administration to ensure a seamless process of land acquisition by genuine investors, thus protecting them from the extortion by land grabbers, popularly called ‘Omo Onile’.

In addition to that, Abiodun has deliberately focused on provisions of road infrastructure and other amenities to attract more investments to the state. Among others, the establishment of the Ministry of Transportation, the development of the Transportation Master Plan, and the building of a cargo airport are some of the critical infrastructures giving the state its competitive edge. All of these have accounted for the preference investors have for the state as an investment destination of choice.

In acknowledgment of the transformation that has taken place under the leadership of the Governor, Vice Present Kashim Shettima, during his recent visit, described Ogun State as the industrial powerhouse of the nation, noted the support and commitment of the present administration to the Federal Government’s efforts to promote enterprises and empowerment of the people.

He passed the commendation on the heels of disclosure by Governor Abiodun that his administration had launched the Small and Medium Enterprises Industrial Land Acquisition Scheme (SILAS). The scheme is about 1,000 Hectares Industrial hub provided with needed amenities like good roads, power, among others.

For four consecutive sessions under his administration, the state has routinely maintained its competitive edge over the rest parts of the country. With the various incentives provided by the administration, the roadmap to industrialisation has already been laid, and it must be sustained. By the combined advantages of its geographical location and oceanic plentitude of land, Ogun State has a manifest destiny to be the leading industrial hubs in Africa.

Towards the realization, there has been continuous improvement in the Ease-of-Doing-Business and land reform initiative which provide attraction for investors. The same reason also accounted for the creation of four economic zones in the State, in addition to Agbara Industrial Zone, which includes Ota and Kajola axes. At present, Agbara Industrial Zone is arguably the largest industrial zone in Nigeria and probably one of the largest in the continent. It is the zone that makes Ogun State the industrial capital of Nigeria.

The decision by the present government to create additional four zones is not only to expand economic opportunities that abound in the State but also makes it investor-friendly. Not only that, a high-performing zone with strong foreign investment can create thousands of jobs. It also helps in building the capabilities of the local workforce, as outside investors share expertise and know-how.

 The days of glory for Ogun State as an emerging industrial hubs are here, as opportunities for direct foreign and local investments are rapidly expanding under the current administration. Expectedly,  the Governor, Abiodun, has hailed the NBS reports listing the state among the best in Internally Generated Revenue (IGR) in the country as well as its sustained economic growth.

At the recent public unveiling and commissioning of the Olumo Courts service apartments and associated facilities in Abeokuta on Saturday, Governor Abiodun noted that Ogun State’s internally generated revenue had surpassed that of several states, showcasing its economic resilience and growth.

The governor attributed the feat to the various policies his administration had been able to put in place to grow the economic base to an enviable position where it no longer needed to rely too much on federal allocations. “According to a recent report by the National Bureau of Statistics, Ogun State generated more revenue than five states in one zone and six in another in 2023. We are among the few states that can thrive without federal support,” he stated.

He described Olumo Courts,  located in Ibara, Abeokuta, as a significant project aimed at enhancing the quality of life for residents. Governor Abiodun acknowledged the criticisms his administration had faced regarding the urban regeneration efforts in the Government Reserved Area (GRA) of Ibara. He emphasized that the successful establishment of Olumo Courts, championed by former President Olusegun Obasanjo, had strengthened his administration’s resolve to transform urban areas throughout the state.

“We initiated the Urban Renewal of Abeokuta, starting in Ibara GRA, despite facing substantial criticism. The achievements of Olumo Courts reaffirm that we are on the right track,” he stated.

According to him, initiatives like Olumo Courts, along with the construction of over 4,000 housing units in the past five years, have bolstered the state’s economy. The governor praised former President Obasanjo as a remarkable figure whose vision had paved the way for projects like Olumo Courts, which features 36 luxury smart apartments equipped with modern amenities such as a swimming pool, tennis court, gym, and squash court. He called for Ogun State’s citizens to draw inspiration from this initiative.

Abiodun explained that Olumo Courts would not only enhance the architectural landscape but also create job opportunities and attract investments, particularly from the Diaspora. He said that the project’s approval process took 17 months due to necessary redesigns to align with urban regeneration goals. He further reiterated his commitment to supporting projects that enhance the state’s economic foundation.

In his opening remarks, Prince Rotimi Martins, a member of the Olumo Courts development team, described the project as the first smart city estate in the GRA, symbolizing growth and investment potential for the state.

Oba Adedotun Aremu Gbadebo, the Alake and Paramount ruler of Egbaland, emphasises that Olumo Courts exemplifies how environmental improvements could foster development. Senator Iyabo Obasanjo, daughter of former President Obasanjo, who also spoke at the event, adding that Abeokuta’s unique geographical advantages position it as a beautiful city ready to welcome the world.

Anytime you hear that Ogun State tops the chart among the leading economically viable states in Nigeria, don’t scream. Across all indices of growth, there are 1001 reasons the state sustains its competitive edge. Governor Abiodun’s innovative spirit, creativity, resourcefulness, commitment to good governance, and creation of an enabling environment for investment through infrastructural transformation did the magic. All that is required to keep the state at the top of the economy is a good successor who can carry on the good work of his administration.

Ogbonnikan writes from Abeokuta, Ogun State capital