Ogun, Moroccan firm to sign $10m deal for export of palm oil by-products

The Ogun state government is set to sign a $10 million investment deal with a Moroccan firm for the export of palm oil by-products.

Dapo Abiodun, the state’s governor, spoke when he received Aisha Rimi, managing director of the Nigerian Investment Promotion Commission (NIPC), alongside Fabio Maia, the director of international expansion at Jose Batista Sobrinho (JBS), and Osorio Dal Bello, his colleague in the poultry and swine department, in his office in Abeokuta.

Abiodun said the by-product, often discarded during palm oil refining, has attracted significant international interest.

“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,” the governor said.

“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.”

OGUN TO LAUNCH TIMBER PROCESSING ZONE

Abiodun also announced that Ogun would soon launch its timber processing zone, adding that the state recently established its inland port, which he said would help manufacturers 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,” he said.

“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.”

The governor said his administration has designated a specific area in the state for livestock production, emphasising the state’s leading position in agro-processing zone development in Nigeria.

He noted that the state, being one of the six agro-processing zones recently created by the federal government, has established a supportive environment and the necessary infrastructure for manufacturers to thrive.

OGUN IN TALKS WITH BOTSWANA TO SET UP RANCH, FEEDLOT FOR CATTLE

Abiodun also revealed that his government is in talks with the Botswana government about a potential partnership to set up a ranch and a feedlot for goats and cattle in the state.

According to the governor, Lagos state slaughters between 10,000 and 15,000 cattle daily, with many sourced from Ogun.

“We have dedicated an area in the state as our livestock production zone,” he said.

“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.”

Abiodun noted that JBS supplies about 50 percent of beef in America and England and approximately 36 percent of pork, indicating the company’s extensive experience and industry expertise.

He affirmed that the state is prepared to collaborate with companies like JBS by offering a conducive business environment for investment.

The governor further stated that if JBS chooses the state for its business venture, the proposed partnership with Botswana would be discontinued.

In his remarks, the director of international expansion of JBS commended the state’s industrial growth, particularly along the Abeokuta-Sagamu expressway.

Maia said JBS plans to build three chicken plants, two cattle plants, and one swine plant, committing $2.5 million to its Nigerian venture.

Also speaking, the managing director of NIPC, noted that the JBS team is conducting a feasibility study and project development plan in the country.

Rimi added that JBS’s visit followed President Bola Tinubu’s recent trip to Brazil, where Nigeria signed an MoU with JBS on livestock production.