Alhaji Aliko Dangote, the President and Chief Executive of Dangote Industries Ltd, recently announced the revival of two major projects in Ogun State, Nigeria, signaling a renewed commitment to investment in the region. The first is the resumption of construction on a substantial 6-million-metric-tonnes-per-annum cement factory in Itori, within the Ewekoro Local Government Area. This project, initially hampered by political obstacles during the previous administration, is now back on track with a projected completion date of November 2026. The second, and perhaps even more significant, is the company’s return to the Olokola Free Trade Zone (OKFTZ) in Ogun Waterside Local Government Area, with ambitions to build the largest seaport in Nigeria. These developments underscore the importance of a stable and supportive political environment for attracting substantial investments and fostering economic growth.
The Itori cement factory, representing an investment of approximately $800 million, faced significant setbacks during the tenure of former Governor Ibikunle Amosun. Dangote revealed that the project was twice disrupted, with construction halted and even existing structures demolished due to the former governor’s opposition. However, the current administration under Governor Dapo Abiodun has fostered a more conducive investment climate, leading to the project’s resuscitation. Upon completion, this new factory, combined with the existing 12-million-metric-tonnes-per-annum Dangote Cement Plant in Ibese, will give Ogun State a total cement production capacity of 18 million metric tonnes per annum, potentially establishing it as the leading cement-producing region in Africa. This expansion is expected to significantly boost the state’s economy, create jobs, and further solidify Nigeria’s position as a major cement exporter.
The revival of the Olokola Free Trade Zone project is equally momentous. Dangote Industries had previously abandoned its plans for the OKFTZ due to unfavorable conditions, but the current administration’s investor-friendly policies have prompted a reassessment. Dangote expressed confidence in Governor Abiodun’s leadership and affirmed his commitment to working with the state government to develop the largest port in Nigeria at the OKFTZ. This ambitious undertaking promises to transform the region’s infrastructure, facilitate international trade, and generate substantial economic activity. The development of a major port further complements Dangote’s broader strategy of investing in key sectors to enhance Nigeria’s self-sufficiency and global competitiveness.
Dangote’s investment philosophy centers on leveraging Nigeria’s abundant natural resources to achieve self-sufficiency in various sectors. He highlighted the company’s success in transforming Nigeria from a net importer to a net exporter of cement and fertilizer. Furthermore, the Dangote Refinery, with its 650,000 barrels-per-day capacity, is already contributing to national self-sufficiency in refined petroleum products, including automotive gas oil (AGO), Premium Motor Spirit (PMS), aviation fuels, LPG, and carbon black. This refinery is now enabling Nigeria to export refined petroleum products, replicating the success achieved in the cement sector. This vertical integration strategy, from raw materials to finished products, not only strengthens domestic industries but also generates valuable foreign exchange earnings for the country.
Underlying Dangote’s investment decisions is the critical importance of a favorable business environment. He commended Governor Abiodun for creating a climate conducive to investment in Ogun State, attributing the state’s attractiveness to its deliberate policies. This recognition emphasizes the crucial role of government in fostering economic growth through policies that encourage private sector investment. The ease of doing business, regulatory clarity, and political stability are all essential factors that influence investment decisions, as demonstrated by Dangote’s renewed commitment to Ogun State. The state government’s commitment to infrastructure development, evidenced by the ongoing construction of the Sagamu Interchange to Papalanto, further enhances the investment appeal.
Governor Abiodun, in turn, praised Dangote’s unwavering commitment to industrializing Nigeria, lauding his return to Ogun State despite previous setbacks. The governor acknowledged the significance of Dangote’s investments, not only for the economic benefits but also for the demonstration of confidence in the state’s potential. He reaffirmed the government’s dedication to creating an enabling environment to attract further investment, highlighting the importance of public-private partnerships in driving economic development. The engagement between Governor Abiodun and Alhaji Dangote signifies a collaborative approach to fostering economic growth and underscores the positive impact of a strong working relationship between government and the private sector. The revival of these projects represents a significant milestone for Ogun State and reinforces the importance of creating a business-friendly environment to attract and retain large-scale investments that can contribute to long-term economic prosperity.
