Why Dangote Chose Ondo State for Nigeria’s Largest Industrial Zone
The decision by Africa’s richest businessman and President of Dangote Group, Aliko Dangote, to establish what is projected to become Nigeria’s largest industrial and free trade zone in Ondo State is rooted in the state’s unique economic, geographic and natural advantages.
During a recent visit to Governor Lucky Orimisan Aiyedatiwa in Akure, Dangote unveiled plans for a multi-billion-naira industrial hub in Olokola, a project expected to transform Ondo State into one of Nigeria’s leading manufacturing and export destinations.
Industry analysts believe Dangote’s choice of Ondo State was driven by several strategic considerations that make the state attractive for large-scale industrial investment.
One of the major factors is Ondo State’s access to the Atlantic coastline through the Olokola axis. The location provides direct access to international shipping routes, making it ideal for export-oriented industries and reducing transportation costs for manufacturers.
Another critical factor is the state’s approved deep seaport project. Once fully operational, the deep seaport is expected to serve as a major gateway for imports and exports, giving industries within the proposed free trade zone easier access to global markets.
The abundance of natural resources in Ondo State also played a significant role in the investment decision. The state possesses vast deposits of limestone, a key raw material for cement production. Geological assessments have confirmed the commercial viability of these deposits, creating opportunities for future expansion of cement manufacturing operations.
Energy availability is another major attraction. Dangote revealed plans to integrate gas infrastructure into the industrial zone through an east-west gas corridor. Ondo State’s proximity to Nigeria’s gas-producing region makes it a strategic location for energy-intensive industries that require stable and affordable power.
The state’s location along the emerging Lagos-Calabar Coastal Highway corridor further enhances its investment appeal. The highway is expected to improve connectivity between major economic centres and facilitate the movement of goods, services and people across southern Nigeria.
Observers also point to the investment-friendly policies of Governor Lucky Aiyedatiwa’s administration as a contributing factor. Since assuming office, the governor has consistently promoted Ondo State as a preferred destination for local and foreign investors, focusing on infrastructure development, ease of doing business and industrial expansion.
Dangote’s renewed interest in Olokola also reflects improved collaboration between the private sector and government. Earlier attempts to develop large-scale projects in the area faced operational and administrative challenges, leading investors to focus elsewhere. However, the current environment appears more conducive for long-term investment and industrial growth.
Economic experts say the proposed industrial zone will not only attract manufacturers but will also create thousands of direct and indirect jobs, stimulate small and medium-scale enterprises, increase government revenue and boost economic activities across Ondo State and the wider South-West region.
For Ondo State, the project represents more than just another investment. It signals growing investor confidence in the state’s economic potential and positions it as an emerging industrial powerhouse capable of competing with established industrial centres in Nigeria.
If successfully implemented, the Olokola Industrial Zone could become one of the most significant private-sector industrial investments in Nigeria’s history and a major catalyst for economic transformation in Ondo State.
