Ondo State, the largest South Western State together with Ekiti, a neighboring state, boasts of the highest number of professors in the country. This has for years lulled many to think that the state is mainly gifted only in the field of academics. But Ondo has a lot of business and economic offerings for any serious investor, this is as the state can help leapfrog the country’s GDP.
The state’s economy is standing on a stool of tourism, solid minerals, agriculture, and industries. These sectors provide a fulcrum to lift the economy, which has been growing steadily in the last decade.
A quick check suggests that the state has a land area of 15,820 square kilometres with a relatively large population of about 4 million, signifying its potential as a high source of labour, management cadre and consumer market. The landmass of 14,798.8 square kilometers is more than 60 percent makes for an agriculture powerhouse in which crops like Cocoa and Maize are grown first at the subsistence level and then at a commercial level.
It is no gainsaying that agriculture is the mainstay of the economy, and the chief products are cotton and tobacco from the north, cacao from the central part, and rubber and timber (teak and hardwoods) from the south and east; palm oil and kernels are cultivated for export throughout the state. Ondo is Nigeria’s chief cocoa-producing state. Other crops include rice, yams, corn (maize), coffee, taro, cassava (manioc), vegetables, and fruits.
What may also be a little hard to believe is that the state has the longest coastline in Nigeria of 90km, an attribute that can be easily placed on any one of the South-South states. The long stretch of beach demonstrates a huge potential for beach resort-based tourism. The Ikogosi hot spring and the historic Idanre Hills are places of interest.
Ondo State’s economy, the 11th largest in Nigeria in terms of Internally Generated Revenue (IGR), is dominated by oil and gas and cash crop production which jointly account for 90% of its Gross State Product (GSP).
Ondo grew its IGR by more than double to N24.79 billion in 2018 from N10.93 billion achieved a year earlier, causing the state to jump 11 steps to become ninth-highest revenue-generating state of the federation after Lagos, Rivers, Ogun, Delta, Kano, Kaduna and Edo state which sustained their positions.
Given the state of violent crimes ranging from kidnapping and pipelines vandalism that characterizes the Niger Delta states, Ondo is the most peaceful state in the region, boasting a calm political milieu and relatively peaceful coexistence among its various ethnic, sub-ethnic and religious groupings. The safety of investments which results, perhaps makes her the most viable investment destination in Nigeria.
Mineral resources available for commercial exploration and exploitation in the State include Crude oil, natural gas, bitumen, limestone, kaolin, granite, silica sand, ball clay, limestone, salt, etc. Ondo State is reputed to have one of the largest bitumen deposits in the world. In this regard, the State is second only to Canada. The emergence of the Akeredolu Administration, with its unwavering commitment to the development of the solid minerals sector, has resulted in the very first serious attempt at meaningful exploitation of Ondo State bitumen resources, according to the state government.
To that end, commitment to investing in the state’s extractive industry did come in 2018 from two industrial concerns, namely South West Bitumen and the Dangote Group. Current efforts by the State, in partnership with the Federal Ministry of Mines and Steel Development and private sector investors, have led to the issuance of four Bitumen exploration/ exploitation license to the State. The State has made it abundantly clear on many occasions that it is willing to partner with private investors who are willing to operate these State-owned blocks.
The state’s 90km coastline holds probably the purest deposits of beach sand silica in the world. They served as raw materials for the moribund glass manufacturing industry at Igbokoda and the shaky ball clay-based ceramic factory at Ifon. Both industries are poised to be rejuvenated by the Akeredolu administration, sources say. The granite products factories at Supare have however faired better and are operating successfully. Information from the state’s website indicates that the Present administration is fully committed to the immediate resuscitation/redesign of all industrial concerns that fall into the above category. These are factories that are based on the abundant mineral and agricultural raw materials in Ondo State and are ready for private sector participation to bring them back on stream.
But the states’ traditional industries include pottery making, cloth weaving, tailoring, carpentry, and blacksmithing. Unfortunately, because of outdated methods of production dating centuries, these industries are not commercially viable. But once they are modernized, there’s no doubt that the state will enjoy a measure of comparative advantage that would help buoy its economy.
The state government is looking to establish a deep seaport that would further deepen the economy, create over 20,000 Jobs and change the state’s infrastructure landscape. Upon completion, the state hopes it would attract international investors from various parts of the world and help to boost the economy of the state.
Five Reasons To Invest In Ondo State
1. Longest Coastline in Nigeria thus making beach resort tourism an attractive investment
2. The most peaceful state in the Niger Delta, guaranteeing the safety of investments
3. Very rich in minerals including Oil and gas, bitumen and Limestone
4. Second largest deposits of bitumen in the world
5. The willingness of the state government to partner private investors
6. Large and very qualified labour force
7. Plans to establish a seaport
