Investment Opportunities in Oyo
State, Nigeria
Presentation
by
His Excellency, Sen. Abiola Ajimobi
Executive Governor of Oyo State
at the
New World Nigeria
High Level investment & Business Summit
1 August 2012
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Our Objective – Why we are here
Oyo State Government of Nigeria is represented at the New World Nigeria, High Level
Investment and Business Summit for a number of reasons, some of which include:
 To initiate a partnership and strong working relationship with the Bank of Industry, as well as
the international development and investing communities and entrepreneurs.
 To create awareness on the numerous investment opportunities in Oyo State with a view to
attracting more private investment flows into key sectors of the State
 To highlight the Government’s priority areas for investment promotion. These include:
1. Agriculture
2. Transportation Infrastructure
3. Manufacturing and Small to Medium Enterprises
4. Solid Minerals
5. Culture & Tourism
6. Power
1
Outline
This presentation will throw light on the following:
 History and Economic Profile of Oyo State
 Strategic Vision for Oyo State
 Priority Sectors and Opportunities for Investment
 Incentives for prospective Investors in Oyo State
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Oyo State’s Antecedents
Historically a Pacesetter
State…
…With abundant and largely
untapped resources
We have been known to set the pace
in the following areas:
 Large arable land – 27,107.5km2
(approximately 10,466 square miles)
 First Sky Scrapper in Africa
 Large population of about 6.7 million
with diverse skills and expertise
 First Industrial Estate in Nigeria
 First University in the Country
 First Stadium in Africa
Cocoa House
 First Television Station in Africa
 Host to one of the first sets of
University Colleges in Africa
 Access to world class educational and
research institutions (UNIBADAN,
NISER, IITA, etc.)
 A number of natural tourist attractions
 Large deposits of solid mineral
resources
 One of the oldest states in Nigeria
First University
 And many others
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Over the years, certain potentials have also been identified in the economic
landscape of the State...
Economic Profile and Comparative Advantage of Oyo State
Popularly known as the
“Pace Setter”
Feature
Statistics
Rank*
Land Area
27,107.5km2
• 1st in South West,
Nigeria
Population
Approx. 6.7m
• 2nd in South West,
Nigeria
Gross State Product
(GSP)
Approx. $1.7b
• 3rd in South West,
Nigeria
Per Capita GSP
$276
• 4th in South West,
Nigeria
Research Institutions
Over 5 world-class
research institutes
• Highest in the South
West
Civil Service Population
38,185 people
• 2nd highest in the South
West
Emerging middle class
Significant market
for product uptake
• 2nd highest in the South
West
*Source: Economic Associates 2010
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A review of the challenges and opportunities in Oyo State unveil the following…
Challenges
 Poor infrastructure especially in the
rural areas including electricity,
transportation, etc
 Low productivity and value chain
addition especially in agricultural
production and processing
 High rate of unemployment among
youths and women
 Ageing farming population
 Inadequate funding especially for
major/large projects
 Shortage of technical expertise in
the public sector to drive a private
sector led economy
Despite these challenges , enormous economic
opportunities abound
Opportunities
 Numerous investment opportunities in agricultural production, agroallied industries and marketing of agricultural produce
 Potentials for tourist attractions and development of the hospitality
industry in the State
 Exploitation and processing of solid minerals
 Opportunities for infrastructural development – Logistics Center, Dry
Ports, Free Trade Zone, and Okerete Transnational Border Market
 Availability of a large market with a population of over 6.7 million
people
 Proximity to Lagos air and sea ports
 Opportunity to leverage on abundance of skilled but low cost labor in
the State
 Higher security of life and property as well as a peaceful environment
as necessary ingredients for investment flows
 Relatively low cost of living fosters low overall cost of doing business
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Having analysed the Opportunities and Challenges, this is our desire for Oyo State…
Our Vision
“A State in which people can be the best they can”
Strategic
Objectives
The Restoration Agenda
Repositioning
Good governance (participatory, transparent and accountable),
effective and efficient service delivery
Agro-based economic nerve center for the West African subregion
Prime center for the development of critical technical and
vocational skills in specialized areas such as agriculture,
manufacturing and craftsmanship
The Pace-setter
State
Transformation
Ground Zero
Where We
Should Be
Preferred destination for national, regional and international
trade, investment flows and leisure activities
Where We
Are Now
Ground
Minus
Zero
Restoration
Before this
administration
Determined to make the state physically functional,
economically vibrant, socially harmonious and aesthetically
delightful
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Some of the ongoing economic/ business-friendly initiatives of Oyo State include…
1
Establishment of a PPP Unit
2
Establishment of a functional socioeconomic management team for the State
3
Preparation of a 10-year Development Plan
in progress
4
Enhanced e-Governance Initiatives
5
Effective and efficient monitoring and
evaluation framework for the State
6
Steadfast promotion of partnership with
the Development community
Government has no business in business
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Oyo State is willing to partner with Investors in exploiting the opportunities in these sectors
Agriculture
Solid Minerals
Transportation
Infrastructure
Culture & Tourism/
Hospitality
Manufacturing &
SMEs
Power
Highlights of the current state of each sector and the aspiration of the State for each of the key focus
sectors are presented in the subsequent slides
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Sectoral Review
Agribusiness and Food Processing – Current State
•
•
•
Agriculture is the major occupation and source of income
for a larger portion of the people of Oyo state.
Oyo State is the 12th largest crop producing state and 15th
largest livestock farming state in Nigeria.
–
Ageing Farming Population
–
Up to 30% post harvest losses due to poor harvest
handling/ storage facilities
–
Sub optimal agricultural
processing companies)
–
Large scale subsistence farming
–
Inadequate infrastructural facilities and
farming methods due to lack of finance
–
Sub-optimal utilisation of dams for irrigation in the
state
–
Unavailability of managerial expertise amongst others.
value-chain
(lack
of
outdated
Agricultural produce in the State includes:
–
•
The State produces well below its full potential due to
the following issues:
Tree crops such as cocoa, oil palm; Arable crops such as
cassava, yam, maize, rice and Fruit crops such as
pineapples, orange, lime, pawpaw, tangerine, guava,
banana and tomatoes, etc
Livestock farming is carried out on a small-scale basis.
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Sectoral Review
Agribusiness and Food Processing – Ongoing Initiatives & Investment Opportunities
Goal
To make agriculture a major driver of growth for the state’s economy, ranking amongst the top
5 agricultural producing states through a profitable, sustainable and technologically driven
agricultural sector
Ongoing Initiatives
 Construction of three agricultural storage silos (10,000 metric tonnes each)
 Preliminary plans for the establishment of canning/ processing factory for key crops
 Ongoing resuscitation of farm settlements and school farms in the State
 Commercialisation of the Government-owned Fashola Farm
 Plans for the development of a 1,377 hectare logistics centre which would be expanded to
15,000 hectares
Investment Opportunities
Agriculture
 Fruits and vegetable production
 Arable crop production
 Aquaculture activities
 Livestock farming
 Farm machinery leasing
Agro-Processing – Value Chain Additions
 Food and Cash crop processing i.e. cassava, oil palm, cocoa, maize, yam, etc.
 Tomato paste and fruit juice processing – through the establishment of canning factories
 Silo and storage facilities building and operations
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Sectoral Review
Solid Minerals – Current State
•
Oyo state is endowed with soil-based resources
which include granite chips, red clay , sand and
gravel that have high potentials in the construction
industry
•
The State also has mineral resources including
Amphibolites, Marble, Dolomite, Tantalite and Talc
•
Oyo State is and currently ranks 7th in terms of solid
minerals production in Nigeria however, the
potentials are yet to be fully explored
•
The state is also renowned for its impressive
gemstone collection and deposits
Although there are over
10 solid mineral types in
Oyo State, the following
are strategic and posses
significant international
industrial linkage
Majorly, current
exploitation is
focused on marble.
Thus leaving
significant potential
for the exploitation
of other available
mineral resources
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Sectoral Review
Solid Minerals – Ongoing Initiatives & Investment Opportunities
Goal
To significantly leverage the extensive solid mineral potentials for socio
economic development of the State
Ongoing Initiatives
 Plans for the establishment of a center for the processing of gemstones in Oyo
State
Investment Opportunities
 Exploitation of available mineral resources especially with the proven reserves
of granite, marble & dolomite, kaolin, etc.
 Investment in large scale industrial ventures and industrial clusters
 Local and international trade of commodities in the State: Solid minerals
 Opportunity to participate as a player in the logistics center which will
ultimately be developed into a Free Trade Zone
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Sectoral Review
Transportation infrastructure – Current State
Transportation in Oyo State is largely by land. Key transport
infrastructure issues include:
 Inadequate Road Network
• Over 1,150km length of Federal Roads in the State
• Over 2,345 tarred roads in the State
The State’s road network is still largely inadequate to
support the large population, especially in the major cities.
 Non-Motorable Roads
A number of the major city roads are not motorable
leading to frequent motor accidents and traffic congestion.
 Low Investment
Low investment in the rehabilitation and maintenance of
existing infrastructure have resulted in low levels of
access to basic amenities and high costs of doing
business in the State.
• The State has an airport in Ibadan, however the
airport is currently sub-optimally utilised
• Rail transport in Oyo State has ceased to be
relevant in recent times although there are ongoing
efforts to expand the rail facility in the State
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Sectoral Review
Transportation Infrastructure – Ongoing Initiatives & Investment Opportunities
Goal
To provide quality infrastructure and transport services for socio-economic transformation and
sustainable development of the State
Ongoing Initiatives
 Construction of modern terminus
 Ongoing plans for the development of a master plan for Oyo State
 “Keke Ajumose” scheme which provides tricycles to riders under the umbrella body of their
association
 Construction, upgrade & beautification of various roads within the metropolis (Circular road)
 Planned construction of flyovers at key traffic interchanges
Investment Opportunities
 Conversion of the under-utilized Ibadan airport into a cargo airport under a sustainable PPP
model
 Construction/rehabilitation of major roads under public private partnership
 Deployment and Implementation of a mass transit scheme through a sustainable PPP model
 Provision of multimodal transport services, including multi-storey car parking facilities
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Sectoral Review
Manufacturing & Small – Medium Scale Enterprises (SMEs)– Current State
• Oyo State currently accounts for less than 1% of total
manufacturing in Nigeria. However, Ibadan is the
industrial hub of the State with over 60% of the State’s
manufacturing output
• Oyo state contributed N4.2 billion to the total national
revenue from manufacturing, making it the third
highest in the south-western region.
• Oyo State’s manufacturing industries
operates below 20 percent capacity
currently
• A number of big players in the manufacturing industry
have established businesses in the State. Some of
such key players include
 Nigerian Breweries Plc
 British American Tobacco
 Procter and Gamble
 PZ industries
• Oyo State ranks third among south-western state
and 14th overall in the country with respect to
dependence on trading
• Oyo State has embarked on the establishment of
enterprise zones across the State in a bid to have
a structured market model to take care for
unskilled workers and artisans
 Various printing & publishing organisations
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Sectoral Review
Manufacturing & SMEs – Ongoing Initiatives & Investment Opportunities
Goal
To encourage and attract small to medium scale businesses and manufacturing from within
and outside Oyo State.
Ongoing Initiatives
 Ongoing activities toward the development of a Free Trade Zone to promote and develop
manufacturing industries amongst others
 Provision of incentives (such as land etc.) to attract foreign businesses and manufacturing
companies
 Ongoing plans for the facilitation of micro-finance loans to SMEs
Investment Opportunities
 Public Private Partnership arrangements with the State Government resuscitate and
manage the State-owned companies into commercially viable entities:
(a) Cashew-nuts processing
(b) Juice &Tomato processing
(c) Electric Products manufacturing
(d) Paper milling
 Establishment of new manufacturing industries to take advantage of the numerous
available resources in the State
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Sectoral Review
Power and Energy – Current State
•
The demand for electric power in Nigeria is estimated at a
very modest 20,000MW, but we are only able to generate
4,000MW at the peak of our power generation
•
Oyo State is also home to Nigerian Cables and Wires
producing housing wires, armored cables, bare
conductors,
telecommunications
cables
and
customised cables
•
Oyo State in line with the general trend in the Country has
constantly suffered huge supply gaps in a bid to meet
electricity demand
•
Oyo State has the potential to support the retail
distribution of electricity through the manufacturing of
electric poles by Conpole limited, a company with
majority share ownership by the State
•
The Ibadan Distribution Company draws approximately
11.5% of electricity from the National grid which is shared
amongst five States and as such barely meets the demand
•
Conpole (equipped with requisite equipments for
production) has over the years performed suboptimally and currently moribund.
•
Despite huge supply gaps, monthly revenues for the
Ibadan distribution company are in excess of $9.6m
monthly.
•
Oyo State has potential for power generation through the
exploitation of the power generation capabilities of the
Ikere gorge, one of the 17 dams in the State which has a
capacity of generating about 450MW of electricity.
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Sectoral Review
Power and Energy – Ongoing Initiatives & Investment Opportunities
Goals
To promote industrialisation and ensure stability of power supply in the State through IPP
projects and embedded power generation
Ongoing Initiatives
 Ongoing discussions with private sector players for the possibility of power generation in the
State through the Ikere gorge dam
 Discussions with interested parties for the resuscitation of Conpole
Investment Opportunities
 Private sector investment in the Ibadan Distribution Company – following the renewed drive
by the Federal Government to complete the privatisation process of the unbundled PHCN
companies by 2012
 Investment in power generation through the establishment of independent power projects
and captive power generation
 Technical support to tap the 450MW potentials in the Ikere Gorge Dam as well as optimise
other dams and rivers for hydroelectric power generation
 Manufacturing of electrical materials from the availability of materials locally
 Solar power generation
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Sectoral Review
Culture & Tourism/ Hospitality – Current State
•
•
Tourism in Oyo State (hotels and restaurants)
contributes 0.49% to the State’s GSP, which translates
to about N1.2b in 2010 (approx. $7.5m).
There is currently one UNESCO heritage site nomination
in Oyo State. The Old Oyo National Park nominated
since 1995
Old Oyo National Park
•
Potential tourist attractions that have historical,
cultural and artistic appeal in Oyo State include:

Ado – Awaye Suspended Lake

Captain Bower’s Tower, Ibadan

Royal Forest (Igbo- Oba) in Igboho;

Old Oyo National Park

Rock formation (Agbele hill) in Igbeti

Sogidi Lake in Awe

Alaafin’s Palace, Oyo

Agodi Park and Gardens, Ibadan

Samuel Ajayi Crowther’s Birth Place

University of Ibadan Zoological garden

National Museum, Ibadan

Alagba – The 324 year old tortoise in Soun’s
Palace in Ogbomoso
Alagba, 324 year old Giant Tortoise in Soun’s Palace, Ogbomoso
Erected in honor and memory of
Captain Bower, the first resident
colonial Administration of Oyo group
of provinces in December 1936 as a
result of his effort at maintaining
peace and social development in the
whole of Yoruba towns and cities.
Captain Bower’s Tower
Many of the tourist sites require investments in terms of infrastructural and aesthetic upgrade in order to
attract sufficient tourism traffic in the state
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Sectoral Review
Tourism/ Hospitality – Ongoing Initiatives & Investment Opportunities
Goal
To make Oyo State a preferred destination for tourism and leisure activities in Nigeria
Ongoing Initiatives
 Signing of an MoU with hotel developers for the development of 2 world class hotels in
the State which together with existing hotels barely meet the market demand in the State
 Renewed drive towards the development of tourist sites in the State
Investment Opportunities
 Public Private Partnership arrangements with the government to develop and manage
existing tourist sites
 Establishment of new tourist sites such as amusement and theme parks.
 Provision of necessary support services such as
 Accommodation: Many of the hotels in Oyo are below international standard and in
most instances do not have standard facilities to support the demands of visiting
tourists.
 Restaurants, Bars: Most of the state’s tourist sites presently have little or no
entertainment facilities such as restaurant and bars which are required to attract
tourists.
 Tour operators: Owing to its undeveloped tourism industry, there are presently no
tour operators to provide tourist packages in Oyo State
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The Federal Government of Nigeria along side Oyo State has put together exciting incentives to
attract investors who are willing to play in the focus sectors…
Federal Government Incentives
Oyo State Government Incentives
• Pioneer Status: 100% tax holiday for up to seven years
granted to qualified eligible industries located in
economically disadvantaged local government areas of
the Federation
• PPP Incentives: The State is willing to partner with
private investors to increase production capacity,
and deliver quality infrastructure across various
sectors
• Corporate Tax Relief: Tax relief of up to 120% of
expenses on research and development carried out in
Nigeria and are connected with the business from which
the income or profits is derived
• Access to land: Prompt access to land through
timely issuance of relevant land title documents
• Liberalisation of Ownership: investors can own up to
100% equity shares in any company
• Repatriation of Profit: Foreign investors are free to
repatriate their profit and dividends net of taxes
• Guarantees against Expropriation: There is a guarantee
that no enterprise will be nationalised by any government
in Nigeria
• Minimum Local Raw Material Utilisation: A tax credit of
20% is granted for five years for industries that attain the
minimum level of local raw material sourcing and
utilisation
• Land at Discounted Rates: Available at highly
discounted rates as incentives for investors
• Personal Tax Relief: Availability of personal income
tax reliefs of players in priority sectors of the State
• Provision of Infrastructure: Provision of support
infrastructure (where required) e.g. access roads, as
part contribution of the State towards large projects.
• Expeditious Processing: Expeditious processing
of required regulatory consent and other regulatory
requirements
• Guaranteed Security: Extremely successful
working relationship with security agents
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Soliciting for the Sustainable Partnership for the Development of Oyo State
Let us join hands on our drive to tap the significant potentials, create wealth for
both the investor and the people of Oyo State.
• At this juncture, and on behalf of the Oyo State
Government, I extend our unreserved invitation to
willing investors interested in taking advantage of
the numerous opportunities that abound in the State
• Please join us in unearthing the significant untapped
wealth that our State possesses
We look forward to welcoming you into Oyo State!
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