Business
Dangote Plans Massive Industrial Free Trade Zone in Ondo
The President of Dangote Group, Aliko Dangote, has announced plans to build what could become Nigeria’s largest industrial-focused free trade zone in Olokola, Ondo State. The proposed project aims to create a fully serviced manufacturing hub where investors can operate with access to reliable power, water, gas infrastructure, and logistics support.
Key Features of the Olokola Project
Dedicated power supply The zone will include its own power generation facilities to reduce dependence on Nigeria’s unreliable national grid.
Manufacturing-focused infrastructure
Roads, water systems, and industrial facilities are planned to allow businesses to “plug in” quickly.
The Ondo State government is expected to have representation on the project’s board to facilitate coordination and implementation.
Why the Project Matters
Dangote described Nigeria’s power shortage as one of the biggest barriers to industrial growth over the past three decades. Many manufacturers currently generate their own electricity, which raises production costs and limits expansion.
By embedding reliable power and infrastructure directly into the free trade zone, the project seeks to remove common business bottlenecks and attract local and foreign manufacturers.
Expected Economic Impact
Job creation
Large-scale employment opportunities are expected during construction and operation.
The zone is designed to attract manufacturers and related businesses.
Officials expect increased exports similar to outcomes from major industrial projects in Lagos.
Ondo State and neighboring areas could benefit from increased economic activity.
Ondo State’s Role
Governor Lucky Aiyedatiwa welcomed the initiative and said it aligns with the state’s industrialization agenda. He highlighted Ondo’s strategic location along the Lagos–Calabar Coastal Highway corridor, as well as the state’s deep seaport license and limestone deposits, which could support future industrial projects such as cement production.
The state government has also established a technical committee to work with Dangote Group on legal, land, community, and operational issues.
Project Timeline
According to Dangote, contractors are expected to mobilize to the site within three to four months, with major construction targeted to begin in the last quarter of the year.
What is the main purpose of the Olokola free trade zone project?
Which major infrastructure challenge did Dangote identify as a barrier to industrial growth in Nigeria?
What additional energy infrastructure is planned to support industries in the zone?
Why does Ondo State consider the project strategically important?
Answers
To create a fully serviced industrial and manufacturing hub that attracts investors.
Unreliable electricity supply.
An east-west gas corridor.
Because it supports the state’s industrialization agenda and leverages its strategic location and seaport advantages.