Investors see Ogun as favourable manufacturing destination

Investors in the manufacturing sector regard Ogun State, located in the south-western part of Nigeria, as a favourable investment destination in the country, according to Real Watch’s checks.

Data show that Ogun industrial zone has, in the past four to five years, had the highest level of investment among other zones.

Data generated from the Manufacturers Association of Nigeria (MAN) show that         Ogun shared 69.9 percent of total manufacturing investment in the second half (H1) of 2016.

Out of the total investment of N448.94 billion made in the sector in the last six months of last year, Ogun got N313.62 billion.

Similarly, a total of N165.61 billion investment was made by manufacturers in the first half of 2016, out of which Ogun led with N54.55 billion, which represents 33 percent of the total.

Out of the N180.12 billion invested in the whole of manufacturing and agro-allied industries in Nigeria in the first six months of 2015, N128.3 billion went to Ogun, representing 71.23 percent. The result in the second half was not too different.

In 2014, investors pumped in N691.77 billion, out of which N514.87 billion went to Ogun State. Hence 74.42 percent of all the investments were directed to Ogun state.

Frank Udemba Jacobs, president of MAN, told Real Sector Watch recently that manufacturers find Ogun as a good investment destination due to government’s commitment to industrialisation.

“Manufacturers are happy with Ogun because they get incentives from the government,” said Jacobs in 2016.

Ogun State provides tax holidays and incentives to manufacturers as well as land rebates, which is not the case in many states, including Lagos.

Coupled with less harassment from touts, manufacturers say there is less traffic gridlock in Ogun and cheaper and more available accommodation for staff in the state.

“Ogun is better in terms of taxes and your production cost will be less,” said a manufacturer who has a firm in Lagos and Ogun states.

More than 70 new manufacturing companies have birthed the state since the election of the State governor Ibikunle Amosun in 2011.

“Seventy manufacturing companies were established during first four-year tenure of Governor Ibikunle Amosun of Ogun State and both existing and new companies were given some level of incentives and benefits that prompted rapid development in manufacturing sector,” said Bimbo Ashiru, commissioner for commerce and industry, said in 2014.

ODINAKA ANUDU