Ogun State Government through its visionary look for energy resources had in 2007 through 2009 initiated a gas supply project from Lagos to the capital city in its bid to tap the overcrowded nature of industries in Lagos.
Ogun State Government in its wisdom saw the reason to explore the proximity of the state to the former capital and the nation’s economic capital. Signing a project valued to $51.10million dollars is huge and prosperous for the state to triumph over the lopsided nature of her IGR.
The project consists of the construction of a 35 km x 24” diameter gas pipeline system of design capacity of 250 mmscfd from the intermediate Pig Launcher Station on the Escravos Lagos Pipeline (ELP) Itoki/Papalento for onward transmission to Abeokuta.
EPC of the tie-in/ pig launching station at the intermediate Pig Launcher Station including Pig launching facilities as required. EPC of the class 600 Abeokuta City Gate Station (ACGS) at Onijaganjagan Industrial Estate to process 250 mmscfd including all station process and civil infrastructure and hookup to potential gas distribution for the safe and reliable gas supplies to Abeokuta. (Gas supply to Abeokuta – Ogun State – Zakhem International).
The above is the replica of what the Oyo State government just signed with Shell Nigeria Gas, $100million worth. Then, how is Oyo preparing to benefit from the project beyond the signing and leaving for the Shell NG to operate for 20 years as signed?
At that preparation beyond the signing of the contract, Oyo Governor, Seyi Makinde, needs to look more inward to the borderlines of Oyo and Ogun, with the interlocking areas. Ibadan to Ijebu-Ode, Ibadan to Ijebu-Igbo, Ibadan to Abeokuta (Ogun State Capital) and with the advantage of newly created light rail system, Ibadan to Sapade, Igboora to Abeokuta, Iseyin to Igboora to Aiyetoro, and host of others between the two states. Also, Oyo’s proximity to Osun, Kwara, Ondo and some other West African countries that connect from the Northern part of the state, Ogbomosho, Saki most importantly.
And to explore the Lagos congested port to the inland dry ports (Erunmu and Moniya), the government should look for appropriate concessionaires for the development and operation of the two inland dry ports, through a proper partnership with the Federal Government.
From the above, we could all see the key points there.
It is important to note that, the virgin lands available between Oyo and both Lagos and Ogun States can be activated, incentivise and use to attract investors that are not interested in entering the inner part of Ogun state but want the express sideway to join British American Tobacco (BAT) in exponentially skyrocket the state IGR.
In all honesty, whether functioning later or not, the Oyo State government has invested in almost all areas of governance. And those are the incentives the investors are looking at to determine how flourish their business would be.
The Light-Up project is superb, and one of the key factors to improve the economy as it aided night markets and businesses. If Ogun State can explore the services above to amplify their economic growth and development, why is Oyo state not riding on that as well and even beat Ogun state in the area of IGR competition? What is Seyi Makinde, Governor of Oyo State not getting right?
Oyo State government has been able to grow its IGR from N8,915,603,182.50 in 2011 to N38.04billion in 2022, which is far from where Ogun State was in 2019.
But can Oyo meet up with Ogun? Yes, Oyo can but it will require lots of discipline and mastering of the industrialization roadmap through the energy sector. That is the most explorable sector in both Lagos and Ogun state. Kudos to the present Commissioner for Energy in the state, Barr. Seun Ashamu for providing the needed stimulus of the ministry and setting agendas for the state government.
Gov. Seyi Makinde should kindly see to the rural electrification project of his administration. He should adequately take the opportunity of the Independent Power Project Initiative to electrify communities, both needing urban and rural areas and allow for natural food processing and exports without any hindrances. If rural production and processing of foods and raw materials are enhanced, Oyo will be serving neighboring states with her agricultural products, and see to the reality of ‘nearness to raw materials’ by industries.
Opening of industrial parks in most of the virgin areas of the state with adequate land reform system from original owners as to avert land related issues for investors.
These are few of many things the Oyo government can do to aid the exponential upward trend of her IGR and to favorably compete with Lagos, Rivers, Ogun and others topping the chart at present in relation to its energy sector drive.
By Yusuf Akinloye
