Last updated on August 5th, 2023 at 09:03 pm
Is Ondo a Good State To Do Business?
If a state is filled with economic resources, it’s very important that it’s conducive to business activities, so, let’s assess the state based on the following:
- Ease of doing business
- Investment policies by the state government
Table of Contents
Ease of doing business
In terms of Ease of Doing Business in Nigerian States according to PEBEC, Ondo is ranked No. 8, the only southwest state that made the top 10.
The ranking was based on infrastructure and security, skills workforce readiness, transparency and access to information, and regulatory environment.
In October 2021, the governor of the state Rotimi Akeredolu said, “It is very easy to do business here because we have tried to remove all bottlenecks.
“Anybody can come and do business in Ondo” during a virtual interactive session entitled Meet The Governor of Ondo State: Investment and Business Opportunities organized by the Nigerian-British Chamber of Commerce(NBCC). He also said that his government is “making land available. The government is here to encourage you.”
In terms of security, Edo state axis into the through Ifon faces a lot of security issues, investors have to be watchful on this axis.
The state is also funding the regional security network “Amotekun” to complement the efforts of the Federal-controlled policing. Since the inception of “Amoteku” security personnel have arrested a good number of criminal-minded individuals with weapons. But the state can do more.
So let’s dive right into the business opportunities in Ondo state for investors who want to tap into the state’s rich resources both on the land and on the sea.
In 2018, Norway and Vietnam made $12.1billion and $7.7billion from seafood and aquaculture exports. That’s how profitable the aquaculture business is if properly harnessed.
Ondo state houses this investment advantage among other states in Nigeria as the state has the longest coastline which is 180KM.
The coastline in Ondo houses exotic fish, catfish, croaker, shrimp, and other aquatic that are highly demanded in the world market.
Palm Oil Business
In November 20, 2021, it was startling to hear Benard Okata, a deputy director (department of agriculture) in Nigeria’s Ministry of Agriculture and Rural Development reveal that Nigeria was spending about $500 million annually on oil palm importation “in order to complement existing gaps in the sector”.
Apart from Edo which houses numerous palm oi plantations, Ondo State is another state in Nigeria that has the potential to cover the gap in short supply in the market.
Most of the palm oil farmers in Nigeria are subsistence, but Ondo soil is rich and highly favourable to palm oil plantations.
This is an investment opportunity for foreign businessmen and women who are searching for highly profitable agriculture businesses to invest in.
Crude Oil investment
Ondo is one of the league of crude-oil producing states in Nigeria most especially in the riverine area of the state. Research by a team from the Nigeria National Petroleum Corporation (NNPC) stated that Ondo state has daily crude oil production of about 0.25 million barrels per day while its crude oil reserve is believed to be 4 billion barrels combined.
Unfortunately, the state produces below its daily capacity due to low investment. This is a business opportunity for investors who want a state that is strategically located in the South-West geopolitical zone.
In June 2021, the state government flagged off the construction of Nigeria’s first privately-owned Gas Inland LPG Terminal this is coming at a time the demand for gas by millions of homes in Nigeria rose astronomically.
There is a huge market for gas in Nigeria, the federal government-owned gas plan can’t meet the demand of Lagos, as such millions of Nigeria still depend on cooking gas from the United States, Algeria, and other countries around the world.
In September 2021, it was reported that 21,606.301 MT of gas was imported from the USA, while 13,044.266 was imported from Algeria and 12,573.779 MT was brought into Nigeria from Equatorial Guinea.
An investor looking to invest in gas exploration can choose Ondo state which can supply other states in the country.
A large deposit of bitumen can be found in Agbabu, Okitipupa, Ondo State, Nigeria. Bitumen has several uses, some of them include: for the construction of roads, it is used to preserve timber and for waterproofing stone walls among others
Ondo is a state that a reserve of over 40 billion tonnes of bitumen, which is estimated to be the second-largest globally because of its economic purpose.
According to the Nigeria Extractive Industries Transparency Initiative (NEITI), Nigeria imports more than N300 billion worth of bitumen every year majorly for the construction of roads
Another statement credited to the head of the Federal Ministry of Mines and Steel Development, Olamilekan Adebgite, Nigeria’s bitumen deposit was about 42.74 btm, spanning approximately 120 kilometres.
Other states in Nigeria that have deposits of bitumen are Ogun, Lagos, and Edo states. This is an eye-opener for investors who are looking for business opportunities in Ondo State
Renewable Energy Investment
Some homes in Nigeria are reducing their dependence on power supply from the unbundled PHCN because of their consistent failure in meeting their needs. Some are migrating to solar as a source of power. The sunshine state houses an investment opportunity in this regard. There are opportunities in the area of solar, wind, and hydropower.
Logistics And Transportation
Whether land or sea, transportation, freight, and logistics is other business that can solve the problem of local manufacturing companies in the state. Most of the manufacturers outsource logistics for product delivery within and outside the state.
With s state like Ondo which is blessed with cocoa production, establishing a cocoa product manufacturing company in the state would be a great Return on Investment (ROI).
Apart from medical products that can be produced from cocoa sees, it’s also a major raw material for the production of chocolate and other states. I’m sure you know what it means when you have the raw materials for production at your backyard.
Ondo state accounts for over 40 percent of cocoa exports in Nigeria, making it the largest in that category. It production volume stands at 240,000 metric tonnes per year at the time of publication. This is a huge market for cocoa exporters in Nigeria. And cocoa production in Ondo has not been fully explored.
Ondo state houses some of the majestic sites in the southwestern part of Nigeria. The Idanre Hills, beautiful rivers that spread across the state, coastal areas are some of the tourism investment opportunities in the state that are yet to tapped.
These sites can be developed for movie production, host to international events, and tourist attraction centre among others.
Ondo is also one of the largest producers of economic trees in Nigeria. It houses numerous economic forests that produce timber for construction and furniture making.
You can be a supplier of wood to major furniture firms in Lagos, Abuja, and other major cities across the country.
Other Agriculture Produce
Apart from aquatic, it is also a home for the production of rice, yams, corn (maize), coffee, taro, cassava (manioc), vegetables, and fruits. All these are yet to be expanded for exports. Most of them are produced for local production.
The state also houses other mineral deposits like kaolin, pyrites, iron ore, petroleum, and coal.
Although Ondo state government promises several incentives like loans for investors who are interested in agro production and processing, we can’t verify this. This I because most Nigerian politicians are good talkers, but are not implementers of policies or what they say. As such, we encourage prospective investors to get their finances right before investing. Don’t depend on the promise of the state for a start.
Above all, there are many lucrative businesses in Ondo State for low and high-budget investors. For instance, other natural resources in Ond state are:
- Dimension Stones