Abiodun’s Economic Drive: Ogun State To Sign $10m Investment On Palm Oil By-Product

…as Abiodun woes JBS, Brazilian livestock giant



A $10 million dollar investment is set to be signed between the Ogun State Government and a Moroccan firm in the next few weeks.

The deal is for the by-product of palm oil in Ogun State.

This was revealed by the Ogun State Governor, Prince Dapo Abiodun, when he received in audience the Managing Director of the Nigerian Investment Promotion Commission (NIPC), Aisha Rimi, alongside the Director of International Expansion of Jose Batista Sobrinho (JBS), Fabio Maia, and his colleague in the poultry and swine department, Osorio Dal Bello, in his office at Oke-Mosan, Abeokuta.

“I was in Morocco last week, and one of the teams that we met there—potential investors—were asking us for a by-product of our palm oil refining, something that we normally discard.

“They are going to be signing a Memorandum of Understanding with us in the next few weeks to actually export, in the first instance, about $10 million worth of this palm oil extract,” he said.

Governor Abiodun also disclosed that his administration would soon be launching its timber processing zone and added that the state recently established its own inland port, which he said would help manufacturers situated in the state accelerate their development.

“We will soon be launching our timber processing zone; we just got a license for an inland port, like a dry port.

“The business case for that dry port is simple: we have more industries here than anywhere else, and all those industries rely on the Lagos port. There is a lot of congestion that has led to inefficiencies that manufacturers continue to incur, and we realized that most of the containers are actually destined for Ogun State.

“So we decided that we should create, on the rail line coming from the seaport that goes through our state, a zone that will be a free trade zone, where all those manufacturers can now send their containers. When their containers arrive in Lagos, they don’t need to clear them again; they just put them on the train, and they come to the destination in Ogun State where they get cleared,” he said.

The Governor also noted that his administration has dedicated an area in the state as its livestock production zone and added that the state is currently the reference point in terms of agro-processing zones in the country.

Prince Abiodun, while noting that Ogun State is first in terms of the development of agro-processing zones in the country, added that the state, which is one of the six agro-processing zones recently established by the Federal Government, is ready with its enabling environment and the right ecosystem for manufacturers to flourish and function in the state.

The Governor noted that his government is currently in discussions with the Government of Botswana on how they can partner with the state by establishing a ranch and a feedlot for goats, cattle.

Governor Abiodun also quoted statistics showing that between 10,000 to 15,000 cattle are slaughtered in Lagos State daily, adding that a fair number of those cattle are from the state.

“We have dedicated an area in the state as our livestock production zone.

“Today, we have the reference agro-processing zone in Nigeria. Six were slated to be established in Nigeria; we are in the first phase of that six, but we are actually number one in terms of development.

“What have we done? We’ve also co-located a special agro-airport in that zone. The idea is that if you are processing goods that are highly perishable and need to be air-freighted, you are processing them in the zone, packaging them there, and can put them on the plane and export from there.

“So, we have ensured the entire ecosystem required to operate in Ogun State, and we will continue to ensure that we provide the enabling environment for that ecosystem to flourish and function,” he said.

Governor Abiodun, while noting that JBS supplies about 50% of beef in America and England and about 36% of pork as well, said that the numbers show that the company has acquired knowledge and expertise over the years.

He added that the Ogun State government is indeed willing to partner with companies like JBS, as the right business environment is available for them.

According to the governor JBS cannot find a better state in the country to partner with, adding that if the company picks Ogun State for its business venture, the business venture with Botswana would be halted.

Earlier in his remarks, the Director of International Expansion of JBS, Fabio Maia, commended the business-friendly environment provided by the Ogun State Government, citing the rapid rise of companies, especially along the Abeokuta-Sagamu expressway.

Fabio Maia, while noting that JBS would be building three chicken plants, two cattle plants, and one swine plant in the country, added that the company would be investing $2.5 million in the country.

The Managing Director of the Nigeria Investment Promotion Commission (NIPC), Aisha Rimi, on her part, noted that the JBS team is conducting a feasibility study and project development plan in the country.

He said that the team’s visit was a follow-up to President Bola Ahmed Tinubu’s recent trip to Brazil where a Memorandum of Understanding (MoU) was signed between the Federal Government and JBS on livestock production.