A three-year study commissioned by the Manufacturers Association of Nigeria (MAN), has shown that Ogun State has over 70 percent share of manufacturing investments in the country between 2014 and 2016.
Key defections from Lagos to Ogun are observed in manufacturing, agro processing investments and even residential estates developments.
Two key reasons were adduced for the directional migration and expansion from Lagos to Ogun State. These include proximity to Lagos which holds the market and access to ports for export and availability of undeveloped lands.
However, at the base of the two factors, lies the attractive government industrial policies in Ogun State over the years.
According to the report, in 2014, manufacturers invested N691.77 billion, out of which N514.87 billion went to Ogun State, representing 74.42 percent of the total.
Apapa and Ikeja in Lagos contributed N15 billion and N85 billion to the investments respectively, representing a combined 15 percent of the total.
Out of the N180.12 billion invested in the manufacturing and agro-allied industries in Nigeria in the first six months of 2015, N128.3 billion went to Ogun, representing 71.23 percent. Ikeja and Apapa industrial zones got N15.74 billion and N6.98 billion, representing 8.7 percent and 3.9 percent share of the total respectively.
MAN report also revealed that manufacturing investments worth N309.33 billion were made in H2 of 2015, out of which N302.26 billion went to Ogun, representing 97.7 percent of the total. Apapa and Ikeja shared the remaining less than three percent with other industrial zones across the country.
The report noted that during the first half of 2016, total investments estimated at N54.55 billion were made by manufacturers in the country, out of which N37.51 billion moved to Ogun within the period. This means that 69 percent of all investments within H1 of 2016 were channelled to Ogun State. Apapa and Ikeja shared the remaining 31 percent with other industrial zones such as Edo/Delta, Imo/Abia, Oyo/Ondo/Osun/Ekiti, Kano/Sharada/ Challawa, Kano Bompai, Anambra/Enugu, Bauchi/Benue/Plateau, Rivers, Kwara, and Abia.
Again, in the second half of 2016, MAN survey shows that N313.62 billion worth of investments were directed to Ogun out of the total N448.94 billion. This represents 70 percent of the total. Like in the first half, Apapa and Ikeja industrial zones stampeded for the remaining 30 percent investments with other zones. MAN is the largest manufacturing association in West Africa with over 2,000 companies as members.
In his remarks on the report, president of MAN, Frank Udemba Jacobs, said manufacturers find Ogun as a good investment destination due to the government’s commitment to industrialisation.
According to him, “Manufacturers are happy with Ogun because they get incentives from the government”
“Manufacturers say they get tax and land rebates in Ogun, which lowers production cost in the long run. It is also easier and seamless to get certificate of occupancy (C of O) in Ogun.
“There is also a one-stop shop that allows investors to have a single point of contact for their dealings with the various ministries, departments and agencies of the state. The cost of doing business in the state is also less when compared with Lagos,” MAN President revealed.
Besides, additional findings by Business Hilights showed that issues of Omonile and harassment from touts are rare in Ogun very light round the clock traffic unlike Lagos.
