Agriculture

Overview

  • About $300m investment committed by the AfDB to improve agricultural productivity.

  • Enjoy close proximity to international markets.

  • The Special Agro-Industrial Processing Zone (SPAZ) is aimed at boosting the rapid development of Agro-Processing capacity in the country through market-led Agricultural transformation.

  • Ogun State has been identify as a natural SAPZ location and suitable for SAPZ innovation due to the aggregation and Agro-transformation going on the State.

  • The State is the largest hub for conventional industries and Agro-industries is located near Lagos, one of the largest market in Africa.

  • The Ogun SAPZ initiative is conceived to focus on seven (7) target value chains: Wood processing, Cassava, Aquaculture and Aquaponics, Poultry, Rice, Horticulture (Vegetables and Spices), and Cattle ranching. To kick start with the first 4.

Current State Assessment

  • Land, Compensation and Siting: – Arable land of over 10,000 ha set aside, surveyed and mapped for clearing and is available for the Central Processing Hub Wholesalers, distributors and other Off-takers abound within 70-100km radius of the selected SAPZ Hub site.

  • Engagement with landlord communities and stakeholders: Government has and continues to engage with several groups to sensitize them on the new initiative and the need for them to key into the plans. Also 50,000 Youth primary producers already organized into clusters of their interest and to be linked with industrial value chain networks.

  • Expansion and Future Development: – 10,000 hectares along the Sagamu-Benin Expressway earmarked as future development area for the SAPZ.

Investment Opportunities

  • The special agro industrial processing zone consists of agricultural transformation center for primary production of the selected commodities and the Agro Industrial Hub for the secondary downstream.

  • The investment opportunities include; construction of infrastructures, Supply of Power, Investment in production and processing companies within the zone, transportation and other allied issues.

  • A cargo airport is been built in the state to facilitate quicker transportation of agricultural produce across key West African countries.

  • An international market has been situated in the heart of the State where some of the agricultural produce can be sold easily.

  • Gateway International Agro-Cargo Airport (GIACA) at Iperu.

  • Light Rail Project (LRP), linking the State to the Agbara Industrial Estate in Lagos.

  • Olokola Free Trade Zone (OFTZ), with an integral Deep Seaport link to the Atlantic.

  • Ogun Tech Hub initiative on Digital Entrepreneurship.

  • Ogun State Government has earmarked 20,000 hectares of land including advanced level brownfield for AFDB SAPZ initiative

Overview

  • The annual demand for chicken in Nigeria stands at 1.5 Million MT of which the country is only able to supply 450,000 MT.

  • Citizens resort to imported frozen chicken which is cheaper than local frozen chicken.

  • Ogun State has strong poultry clusters between Sagamu/Ijebu and Ibadan,

  • The difference in price is due to the high cost of local poultry production, in part due to the high cost of feed.

Current State Assessment

  • There is no available poultry processing services to complement production by small holder poultry farms.

  • The Broiler project which is designed to produce meat for consumption and facilitate training for poultry farmer’s and their representatives, but the reality of time has made it expedient to produce broilers throughout the year, when challenges of processing and storage is resolved.

  • 54 pilot youths completed.

Investment Opportunities

  • To replicate the project in all local government area within the State

 

Overview

  • Ogun State is one of the principal producers of Cocoa in Nigeria and great potential to expand output for increase productivity and improve rural livelihood.

  • Cocoa is the single largest foreign exchange earning non-oil commodity in Ogun State.

Current State Assessment

  • Nigeria is the 5th largest producer of cocoa sharing 5.73% of the world production rate.

  • 5.52 Billion Cocoa beans was generated in 2016.

  • Annual cocoa bean trade alone is worth US$354 million (N107 Billion).

  • Ogun State has annual graded cocoa production of 6,175 tonnes as at 2015.

  • GDP of US$179.8 Billion which is 37.4 % of national GDP estimated at US$481 Billion.

  • Annual Graded cocoa beans: 97,504 and126,142 MT (2012 -2016).

  • 3 million hectares of land are suitable for cocoa production in Nigeria.

  • 342,000 Ha (36.6%) of land is currently utilized for cocoa in five states such as Ondo, Oyo, Ogun, Ekiti and Osun.

  • 79,052 Hectares of cocoa are cultivated in Ogun State.

Investment Opportunities

Investment opportunities are available in mechanization Services (Tractors, Bulldozers etc.) and Agro Processing Equipment.

There are opportunities in cocoa plantation and in the establishment of processing plants.

Overview

  • Nigeria is the world’s leading producer of Cassava with total annual output of 59.4 million MT, with the yield per hectare in the country averaging at about 8.76 MT/Ha. Over 180,000 ha of land is available for Cassava planting in Ogun State.

  • There is high demand for the crop both for industrial use and domestic consumption locally and internationally, no likelihood of glut.

  • There are existing processor SMEs to off-take the farm output for immediate value addition and marketing, while more investors are setting up their factories.

  • Production of High Quality Cassava Pellet (HQCP).

Investment Opportunities

  • Farm mechanisation: Investors can invest in mechanization service providing schemes, whereby farm machineries are acquired for use by farmers for land clearing and land preparation activities.

  • Clustering of farmlands: Investors can enter into a contract with farmer cooperatives/groups to clear land for them so that they pay back on installments.

  • Transportation: Investors can engage in truck carriage services aimed at encouraging investments in mobile fresh cassava cake production (from cassava roots) instead of transporting bulky roots.

  • Processing and Storage Facilities: Capacity building for farmers/processors on acceptable levels of requirement of some cassava derivatives on acceptable levels of requirement of some cassava derivatives such as chips production, flour and garri production as per moisture content level, colour and size. Provision of adequate, modern processing equipment that will enhance quality of cassava products for cottage industries at the village/ household level.

  • Marketing: Market outlets for both fresh cassava roots and products e.g. High Quality Cassava Flour (HQCF), High Quality Cassava Peels (HQCP), Starch, Syrup, Ethanol, to put an end to cyclic glut.

Overview

  • Ogun State has abundant water bodies suitable for marine, brackish, and fresh water aquaculture. It has an 18km coastline along the Atlantic Ocean, where there are an estimated 50,000 artisanal fisher-folks engaging in artisanal fisheries and fish production with over 18,000 fish ponds in the State.

  • Fish production is economically rewarding and profitable. It is capable of creating employment, augmenting income and improving the standard of living of the people.

  • Private sector participation in Aquaculture will boost economic potential of fish farming and also increase the quantity of fish available for consumption.

Current State Assessment

  • Ogun State is home to the largest single Fish Farm Estate in West Africa i.e. Eriwe Farm Estate, the Biggest hub for Aquaculture Enterprise (Ponds, Fishery Feed Mill Etc.) in West Africa and the largest Cage culture (TILAPIA) Farm in Nigeria i.e. Premium Aqua.

  • The Food and Agricultural Organization (FAO) after its studies on Fish Farm Estate, ranked the Fish Farm Estate Project as the largest single Fish Farm Estate in West Africa

  • There are 3 State Government assisted Fish Farm Estates with a capacity of 740 ponds as at 2017.

Investment Opportunities

Investment opportunities exists for the establishment of :

  • A world class fish pond to bridge the gap between fish demand and supply in Ogun State.

  • Aquaculture fish seed production and management.

Overview

  • Ogun State rice output has grown from 7,932 in 2002 to 72,500 Tons /Annum in 2016. This is less than 0.5% of total national rice output of about 3million Tons/Annum. The size of land put into cultivation has grown from 9,579 in 2020 to 54,882 hectares respectively which accounts for a share of 0.7% of the entire national land area cultivated for Rice production.

  • Ogun State has the potential for Rice production under upland and lowland rain-fed conditions. Rice cultivation is on a small scale and fragmented throughout the state.

  • There is existing proposed Anchors/Off-takers in Rice Value chain in Ogun State.

Current State Assessment.

Rice is grown in 11 LGAs in the State. Estimated Clustered rice farmers’ population is 10,975 with another 2500 outside the registered rice farming groups.

Average hectare put to rice is about 39,704 Ha/Annum. Average yield hovers around 1.5 – 2.0MT/Ha. Rice farms cultivated by State Government supported youth groups across the State, are at a combined land size of over 1,000 hectares.

National Centre for Agricultural Mechanization (NCAM) installed Rice mill at Atan in Ijebu-North-East LGA (20 Tons/day capacity).

There are 13 small mills in the State whose installed capacities vary from 0.4 to 5metric Ton/day.

The State Government has installed 2 Rice mills at Sawonjo in Yewa-North LGA (20 Tons/day capacity) and Asero – Abeokuta in Abeokuta-South LGA (50 Tons/day capacity). A Rice mill has been installed by the National Centre for Agricultural Mechanization.

Investment Opportunities

  • Management of rice farms in the state in a fully mechanized system: planting, routing management, harvesting & post-harvest.

  • Management of the installed automated rice milling machine

  • Warehousing, marketing and market information Linkages.

  • Research & laboratory services for development of improved varieties of rice.

  • Cultivation and processing of special Faros 44 , 52 and 57 rice type.

  • Irrigation systems for all season rice cultivation.

  • Rice seed multiplication.

Overview

  • Direct Procurement: Purchase of FFV (Fresh Fruits and Vegetables) or Palm Oil from the State.

  • Out Grower Partnership via Purchase Order Agreement.

  • Joint Investment to rehabilitate State Owned Plantations.

  • Investment opportunities are available in Oil Palm value chains including extraction of oil, cake for both local market and exports.

  • There are opportunities to revamp the current plantation in Ipokia or within the available dedicated land, to develop new ones.

  • The maintenance programme will be on a minimum of one (1) hectare per farmer. The fund elements will include weeding, slashing, pruning, fertilizer application and harvesting.

Current State Assessment

  • Ogun State directly owns 7,160 Ha of Oil Palm Plantation.

  • 62,000 MT/Ha/Annum of oil palm yield in the state.

  • The state has total size of 18,374Ha of oil palm plantation.

  • 82,360 Ha of land is available for oil palm plantation.

  • Yearly production of 2,000,000 MT/Annum.

  • 646 farmers are in the cultivation of oil plantation in the State.

  • Oil Palm Production in Nigeria increased at a rate of 7% annually between 2012 and 2016;

  • Ogun State is ranked 12th in Oil Palm Production in Nigeria.

  • 90.0% of palm oil is consumed by food industry and the remaining 10.0% is used by the nonfood industry.

Overview

  • Ogun State enjoys one of the highest production rates per hectare.

  • Sustainable production that is private sector driven, adheres to climate smart and good environmental practices as well as in inclusion in Small Holder Farmers.

  • Ogun State ensure that farmers have access to quality seedlings and other inputs.

  • Mechanization services improves production rate of farmers and promote cluster model.

Current State Assessment

  • Ogun State has a planted size of Cashew at 366,000 Ha, 8% of National production yield.

  • Over 1000 farmers with cashew plantation ready for processing immediately.

  • Ogun State production yield for year 2019 is estimated at 836,500 MT of Cashew, 65% of Cashew nuts and the average yield of Cashew plantation per Ha is 2.3 metric Tonnes.

  • Cashew farmers are 45% of the 2 million farmers in the state.

  • Yearly production of 3.0 million MT of Cashew plantation.

  • Raise per hectare production capacity from 2.3 kg/Ha/yr to 4.6kg/Ha/yr.

Investment Opportunities

  • Diversification of cashew market through cashew nuts, chips, candy and fruits to tap into displacing the $600 million annual import market.

Infrastructure

Overview

Ogun State as Nigeria’s largest industrial hub is home to many industries the required uninterrupted power supply.

Opportunity

Investment opportunity exists for investors to build, own and operate an Industrial Power Project in partnership with Ogun State Government, to supply power for five (5) identified clusters in Ogun State.

Overview

Ogun State is witnessing massive rehabilitation and construction of roads as the government has identified road infrastructure as a catalyst for socio economic development.

Ogun State has a large rural populace with one or two cities that have over 300,000 people. Some of these cities are close to Lagos State and residing in Ogun State.

Opportunity

Investment in Bus Rapid Transit System:

  • A network of Bus Mass rapid transit routers will form the backbone of intra-city and inter-state public transportation services across the state.
  • Investment in Construction of a Truck Transit Parks.
  • State Transit Park: This is located at Ogere Remo along Lagos/Ibadan expressway.
    There are other Trailer parks at Gbokoniyi, Onikolobo, Abeokuta, Leme Abeokuta, Mechanic Village Saje and Owode-Ijako.
  • Investment from private sector is expected in the area of improvement of existing Truck/Trailer Parks and Construction of a new World Class Truck Transit Park at Ogere and other strategic locations in the State.

 

Construction of a Truck Transit Parks

Overview

  • State Trailer park in Ogun state can be found at Ogere Remo along Lagos/Ibadan expressway. There are other Trailer parks at Gbokoniyi, Onikolobo, Abeokuta, Leme, Abeokuta, Mechanic Village Saje, Abeokuta and Owode-Ijako.

  • The truck drivers majorly park along the road thereby causing traffic and degradation of the environment.

  • Investment from private sector is expected in the area of improvement of existing Truck/Trailer Parks and construction of a new World Class Truck Transit Park at Ogere and other strategic locations in the State.

Current State Assessment

  • To construct a World Class transit Park for trucks and provide truck drivers with a resting place.

  • To discourage indiscriminate parking of Trucks/Trailers along major roads and junctions.

  • To improve traffic and stop degradation of the environment by trucks/trailers.

  • Truck/Trailer Drivers are very much in need of secured environments where their vehicles can be parked without fear of theft to their goods or vandalization of their vehicles.

  • To provide serene and peaceful environment for truck drivers to rest and relax after driving for long hours.

Investment Opportunities

  • Investment from private sector is expected in the area of improvement of existing Truck/Trailer Parks.

  • Ticketing.

  • Security Management.

  • Operations.

  • Manufacturing of Roll Stock

Overview

Largest technology hub in Nigeria. Highest number of Tertiary Institutions (23) in Nigeria with easy access to digitally-savvy and trainable youth.

Opportunity

Establishment of data centres given the unsaturated cloud market. Establishment of IT Training centres to increase IT proficiency across the state. Delivery of Smart City Initiatives to enhance waste management, transport, healthcare systems etc. Provision of E-governance systems to improve delivery of public services.

Overview

There’s is an increasing demand for quality healthcare services due to increasing middle class, huge outbound medical tourism.

Opportunity

  • Facility owner and management
  • Transaction Advisory Services
  • Staff payment and capacity building
  • Supply/Production of equipment and services
  • Establishment of new specialist hospitals

 

Pharmaceutical

Overview

  • Ogun State has 18 pharmaceutical manufacturing companies and there is an opportunity to develop more companies as the state is rich in pharmaceutical component such as kaolin, Gypsum, Calcium, Mica and Tar sand.

  • The combine revenue base for the sector for Nigeria and Ghana was estimated to be $3.12billion in 2018 having an average growth rate of 13.4% since 2003.

Investment Opportunities

  • There are opportunities for construction, operation and management of pharmaceutical manufacturing companies. Huge market size as the demand will be beyond Ogun state.

Economic Development Clusters

Environmental

Culture, creative arts & tourism

Overview

  • Ogun State is renowned for the production and promotion of its rich indigenous fabric, Adire. Adire is an exotic fabric made through a Tie and Dye process in the Textile industry that is loved and coveted for its intricate designs as well as the process involved in its production.

  • There is high demand both locally and internationally for the locally made Adire: A material designed with wax resistant methods that produce patterned designs in a dazzling array of tints and hues.

  • There are opportunities to construct and manage a Textile producing factory that will specialize in the production of Adire and other Indigenous Textiles.

Current State Assessment

  • The recent official launch of Adire Ogun Digital Market will open up the entire value chain available in the production of the Adire fabric.

  • A strong value chain already exists in the production of Adire textile but the local industry does not employ modern mechanised factory techniques in its Adire production.

  • Abeokuta is home to the largest Adire (Tie & Dye) Market in Africa.

Investment Opportunities

  • There are investment opportunities for the provision of Machineries for the production of Textiles.

  • Building of Textile factory for the production of indigenous Adire.

  • Establishment of allied businesses for constant production/ provision of required raw materials i.e. Fabrics, Dye, Chemicals etc.

  • Sales and marketing of Indigenous fabric-Adire.