Ogun to sign $10m oil-palm by-product deal
…Woos JBS, mulls establishment of timber processing zone
The Ogun State Government is poised to sign a $10 million deal for the refining of palm oil by-products within the state, Governor Prince Dapo Abiodun has announced.
The Governor made the revelation when he met with Aisha Rimi, Managing Director of the Nigerian Investment Promotion Commission (NIPC), Fabio Maia, Director of International Operations at JBS, and Osorio Dal Bello from the poultry and swine department, in his office at Oke-Mosan, Abeokuta.
Governor Abiodun confirmed that the state is prepared to partner with Jose Batista Sobrinho (JBS), a global leader in the protein industry based in Brazil. With a history spanning seven decades, JBS is the world’s largest producer of protein and the second-largest food company globally. The company processes beef, pork, lamb, and chicken, and also produces convenience foods and value-added products.
The Governor expressed his eagerness to collaborate with companies like JBS, highlighting that Ogun State offers an ideal business environment for such ventures. He stressed that, should JBS choose to partner with Ogun, it would halt its business venture with Botswana, underscoring the state’s attractive investment climate.
“I have read about JBS, I know how significant your market share is. You supply around 50% of beef in America and England, and about 36% of pork. These figures reflect the vast knowledge and experience you’ve acquired over the years,” Governor Abiodun remarked.
He added that the state already hosts major corporations such as Nestlé, Olam, Cadbury, and May & Baker, with their manufacturing headquarters located in Ogun.
The Governor also shared that his administration has designated a specific area in the state for livestock production. Ogun State, he noted, is becoming a leader in agro-processing zones in Nigeria.
“Ogun is leading the country in agro-processing zones. We are in the first phase of the six zones recently established by the Federal Government, and we are already number one in terms of development,” he said.
Abiodun highlighted that the state has not only created a dedicated livestock production zone but also co-located a special agro-airport within that zone. This strategic development will facilitate the export of highly perishable goods by allowing for their rapid processing, packaging, and air-freighting directly from the zone.
“We have made sure the ecosystem necessary to operate in Ogun State is in place, and we will continue to ensure the environment remains conducive for businesses to thrive,” he added.
Further underscoring Ogun State’s economic growth, Governor Abiodun disclosed that a Memorandum of Understanding (MoU) will soon be signed with a Moroccan firm for the export of palm oil by-products.
“I was in Morocco last week, and we met with a team of potential investors who are interested in a by-product of our palm oil refining—something we usually discard. We will be signing an MoU in the coming weeks to export $10 million worth of this palm oil extract,” he explained.
Additionally, the Governor revealed that his administration is set to launch a timber processing zone and has recently established an inland port, which he believes will help accelerate the development of manufacturers in the state.
Earlier, Fabio Maia of JBS praised Ogun State’s business-friendly environment, pointing to the rapid development of companies along the Abeokuta-Sagamu expressway. He also shared JBS’s plans to build three chicken plants, two cattle plants, and one swine plant in Nigeria, with a total investment of $2.5 billion.
Aisha Rimi, Managing Director of the Nigerian Investment Promotion Commission (NIPC), noted that JBS is currently conducting a feasibility study and project development plan in Nigeria.
She added that the 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.
