By Sulaimon Olanrewaju
Before 2019, Oyo State’s profile was far from impressive. With an internally generated revenue (IGR) of about N1.8 billion monthly, the state’s economy was described as “largely agrarian,” with the Oke-Ogun area being the state’s food basket.
For a state that was once Africa’s intellectual capital, boasted a skyscraper when Dubai was just a fishing village, and housed numerous companies, the “agrarian” label was neither fitting nor flattering. Understanding that an agrarian economy in an industrial age leads to poverty, Governor Seyi Makinde, upon taking office in May 2019, set out to transform the state. He implemented two main strategies to achieve industrialization.
The first strategy was to shift the state from subsistence farming to industrialization through agribusiness. His initial focus was Fasola Farm Estate. Under his leadership, this once-neglected farm estate has become an industrial hub attracting numerous investors. Fasola Farm now produces significantly more than 1,000 traditional farmers combined, thanks to innovative thinking and advanced technology. It has become a convergence point for agriculture, science, technology, commerce, and industrialization, housing companies like Chief Quails Limited, SWAgCo Limited, FreislandCampina WAMCO Nigeria, BrownHill Group, and Milkin Barn Agriserve Ltd.
Fasola is also becoming a tourist attraction and a learning center for young farmers and a support base for smallholder farmers. In March, the National Project Coordinator of the Livestock Productivity and Resilience Support Project (L-PRES), Sanusi Abubakar, led a team from 16 states to Fasola. They were impressed with the hub’s progress, particularly its training on artificial insemination and livestock management.
The hub supports smallholder farmers and serves as a center of excellence for learning and tourism. Dr. Debo Akande, Director General of Oyo State Agribusiness Development Agency (OYSADA), highlighted the hub’s role in teaching modern agricultural techniques to students from Ladoke Akintola University of Technology.
Fasola Industrial Hub is a testament to creating prosperity for both current and future generations. By refining its management structure, the chances of the hub falling into disuse have been mitigated. With Fasola’s success, the government plans to replicate this model in other zones of the state.
Governor Makinde, an electrical engineer and entrepreneur, understood that industrialization requires reliable electricity. Recognizing energy poverty as a significant barrier to development, he took decisive action. On September 30, 2020, he signed a Memorandum of Understanding (MoU) with Shell Nigeria Gas Ltd (SNG) for a Pressure Reduction & Metering Station (PRMS) to distribute gas for electricity across the state. This was followed by the construction of gas pipelines, culminating in a final investment agreement signed on April 30, 2024, in London.
This $100 million gas project, a partnership between Oyo State and SNG, involves constructing a PRMS and laying pipelines on a Build-Own-Operate-Transfer (BOOT) basis, with ownership transferring to Oyo State after 20 years. Governor Makinde described the project as a catalyst for Oyo State’s development, aligning with his plan to drive innovation and industrialization.
In about 18 months, Oyo State is expected to experience uninterrupted power supply for industrial, manufacturing, and commercial entities. This will reduce energy costs for companies, increase production, and create more jobs, positively impacting the state’s GDP and IGR. The project will also attract more companies to the state, potentially making Oyo a major business hub.
The gas project will eventually ensure electricity sufficiency across the state, enabling factories to locate in rural areas and reducing urban migration. This decentralization of industrial activity will spread development throughout the state.
The Light Up Oyo project will benefit from uninterrupted power, enhancing security by reducing crime opportunities under the cover of darkness. After 20 years, the state will assume ownership of a matured, valuable project worth significantly more than its initial $100 million investment.
Through the gas project, Governor Makinde is ensuring energy sufficiency and creating lasting prosperity for Oyo State.
Sulaimon Olanrewaju Chief Press Secretary to Oyo State Governor.
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