Return of Dangote Group as New Chapter in Ogun Industrial Revolution

Femi Ogbonnikan

Last Monday, the governor of Ogun State, Prince Dapo Abiodun, hosted the President and Chief Executive of Dangote Group, Alhaji Aliko Dangote in his Oke Mosan office, Abeokuta. The historic meeting was another significant event in Ogun State’s recent history, as it marked a new chapter in the relationship between the state government and Africa’s biggest conglomerate, following the temporary closure of the cement factory at Itori, few years ago.

This development is especially noteworthy, given Dangote’s plan to invest more in Ogun State, including the construction of a 6 million metric tons per annum cement plant in Itori, which will be the largest in the country. The renewed partnership between the state government and Dangote Group is expected to foster economic growth and development in Ogun State.

In his address, Dangote disclosed that his company’s decision to return and invest in Ogun State was because of the Abiodun administration’s vision and deliberate policies that focused on attracting investors, as well as the investor-friendly climate in the state. According to him, Ogun State is one of the most attractive investment destinations in Nigeria, positioning itself as the manufacturing ‘bedrock’ of Nigeria.

By his decision to stage a second come-back, Dangote is not only rebuilding the cement factory to make it one of the largest in Africa, he has also resolved to revisit his abandoned vision to invest in Olokola Free Trade Zone, planning to construct the largest port in the country.

He said: “I would especially like to commend, in a special way, my good friend and brother, Your Excellency, the governor of Ogun State, for your vision and deliberate policies that focus on attracting enterprises through immense support for the private sector, which is now attracting investors.

“Our factory at Itori was pulled down twice. When we started the second time, they not only demolished the factory but also the fence, so we left. But right now, because of His Excellency, our governor, Prince Dapo Abiodun, we are back. When you visit the factory, you will be surprised at what we have done.

“We had earlier abandoned our vision of investing in the Olokola Free Trade Zone (OKFTZ), but because of your policies and investor-friendly environment, I want to say we are back and will work with the state government to return to Olokola, and plans are underway to construct the largest sea port in the country.”

This represents a significant milestone in the government’s effort to achieve industrial growth in the state. The multiplier effect of it will reflect in the fortune of the state’s economy for generations to come. Apart from the opportunity for job creation, and an increase in Internally Generated Revenue (IGR), the group’s Corporate Social Responsibility (CSR) will also change the state’s infrastructure landscape.

Hear from the horse’s mouth: “We promise to do more in the area of Corporate Social Responsibility (CSR), especially in the construction of concrete roads. We may not have met all your expectations but will do more. Our Social Investment in

Ibese and the surrounding communities is guided by a Community Development Agreement which was signed with the host communities in 2022. This 5-year tenured agreement reflects community needs and priorities which we have committed to implement as a way of complementing the efforts of the state government towards the development of the communities.

“In the last three years, we have spent over a billion naira in the areas of education, health, economic empowerment, skill acquisition and infrastructure development. Our budget for various community projects within Ibese and surrounding communities for the year 2025 is about N1.2 billion. This will further deliver social economic infrastructure and empowerment programs to the host communities

“In Itori, we have signed a Community Development Agreement with the host community with firm commitments to implement projects and programmes that will address their needs and those of neighboring communities. As a responsible corporate organisation, we shall continue to address the concerns of our neighbors and contribute to societal wellbeing.”

It’s a win-win situation for the government, the host communality and the generality of the people. For being able to woo the company back to the state despite the initiative obstacles, Governor Abiodun deserves a big commendation for creating a favourable investment climate in the state. This is a testament to his tenacity of purpose and a clear vision of economic prosperity for the citizenry. Regardless of the circumstances of its closure, in the first instance, Dangote Group has become a huge phenomenon in the business world you only ignore at your peril. Based on its net worth as the biggest conglomerate in Africa, boasting of the single largest refinery in the world, Dangote has left an indelible imprint in the sand of time.

Unlike other investors, Dangote’s investment insight is distinguished by prioritizing Nigeria in all that he embarks upon. In his relentless effort to complement the government’s effort to overcome the challenge of the economy, he has left no one in doubt that he has the interest of Nigeria at heart. His contributions to the nation-building process through employment generation, foreign exchange earnings and Corporate Social Responsibility, among others, remain unequaled and unparalleled. “Nigeria is a growing economy; the developmental challenges are quite enormous and require concerted efforts to overcome them. This is why private companies should complement the government’s efforts. It is in this light that we at Dangote Industries continue to demonstrate our belief in this nation and its people and make investments that are targeted towards transforming the economy of the nation through our work in Ogun State as we have done elsewhere.

Abiodun saw all these and smartly tapped into the ever-growing investment potential. The people will remain eternally grateful for his vision and the feat he has achieved in his industrial transformation agenda. But for his tenacity of purpose and the creation of a conducive environment for investment, Ogun State would have missed the opportunity of the reopening of the two cement factories as it lost Dangote refinery to Lagos. “A key factor that drives investments in any economy is the presence of an investor-friendly business climate. Indeed, Ogun State today is one of the most attractive investment destinations in Nigeria and has methodically–crafted itself as the manufacturing bedrock of Nigeria. This is tested by the influx of many manufacturing firms setting up their plants here. I especially, will like to commend in a special way, my good friend and brother, your Excellency, the Governor of Ogun State for your vision, and deliberate policies that focuses on attracting enterprises through an immense support for the private sector which is now attracting investors,” Dangote posited.

He also thanked the host communities for their support and encouragement. “We have also received tremendous support and encouragement from both the traditional ruler and the good people of Itori land, which enabled speedy takeoff of the project.

“Similarly, we enjoyed such tremendous support from the traditional rulers in Yewaland and host communities of Ibese Cement Plant. We are grateful for such an overwhelming show of partnership and support and ask that this same level of support be extended to the operations of the plant”, he added.

According to Dangote, the company’s ongoing projects in the state have two new lines with a capacity of 6.0 million metric tons per annum for the cement plant have been constructed at Itori, while the 12 million metric tons per annum cement plant is also located at Ibeshe.

As projected, the total capacity of the company’s cement plants in the state would be in the neighborhood of 18 million metric tons per annum, making it the highest cement-producing state or region in Africa. “With the contributions of other cement producers in the state, Ogun remains far ahead of other countries across Africa in terms of cement production,” he said.

Governor Abiodun, who could not hold back his excitement for the new investments, thanked Dangote for his decision to come back to reopen the closed factories. He said: “I want to thank you for coming back to Ogun State and also for your belief and trust in your country, Nigeria. I want to thank you for all that you have done, the number of people you have employed, and the impact you continue to make not just in this state, but in Nigeria as a whole.

“The way you selflessly continue to promote this country all over the world, we can’t thank you enough. Your life and story continue to be an inspiring narrative for all young men. You have excelled in everywhere you touch; you have the Midas touch.

“These are indeed giant strides. For us in Ogun State, we welcome your return to the state. Today is a historic day, March 17, 2025, the same March when you did the groundbreaking in Lagos for the refinery, and you are now coming back in the month of March to Ogun State.

“Not only have you chosen to complete Itori, but you have also chosen to come back and develop the biggest port in Nigeria. For this, I thank you.”

Abiodun emphasized that with the establishment of the Itori cement plant, the proposal to produce six million metric tons of cement per annum, and the existing Ibeshe plant, producing 12 million metric tons, cement production in the state would total 18 million metric tons per annum, making it the largest cement producer in Nigeria and sub-Saharan Africa.”

The Governor assured of his administration’s readiness to work with the company for the good of the state and the nation as a whole.

Abiodun also used the opportunity of the historic visit to appeal to Dangote Group and the contractor handling the construction of the 100-kilometre Sagamu-Papalanto-Iro-Ilaro-Obelle road in Ewekoro Local Government Area of the State to expedite action on the road and ensure that the road is 70 percent completed by the end of the year.

While inspecting the level of work done on the road alongside the Group’s President and other dignitaries from both sides, he said the road would compete with the Sagamu-Abeokuta expressway in terms of industrial and economic growth when completed.

The Governor further noted that the availability of gas in the Sagamu-Papalanto-Iro-Ilaro-Obelle axis would also play a major role at making the corridor an option for many investors around the world.

“We are here again on the Sagamu- Papalanto-Ilaro-Obelle road. This road is a 100 kilometer road and we are hoping that by the end of this year,this road should be near completion.

“You can see that this corridor is not developed now, but, by the time the road is completed, it will compete with the Sagamu-Abeokuta expressway because there is gas here with a shorter route for industries to site and distribute to the hinterland,” he said.

Governor Abiodun described the commitment of Alhaji Dangote to the development of Ogun State and Nigeria as a mark of deep commitment and patriotism. “Another mark of deep commitment, patriotism and corporate social responsibility that is exemplary and there was a lot of back and forth. The road was originally designed to be an asphalt paved road, but, Alhaji thought that for this road to serve Ogun State and Nigeria for as long as he anticipated, it has to be turned into a concrete road,” he added.

*Ogbonnikan writes from Abeokuta, Ogun State