Dangote Revives Plan to Build Mega Free Trade Zone in Ondo State

Africa’s richest man and President of Dangote Group, Aliko Dangote, has revived plans to develop a major industrial and free trade zone in Olokola, Ondo State.

The proposed project is expected to turn the coastal community in Ilaje Local Government Area into a large-scale industrial hub with dedicated power, water, gas and logistics infrastructure for investors.

Dangote disclosed the plan during a strategic meeting with Ondo State Governor Lucky Aiyedatiwa in Akure. He said the project would go beyond a conventional free trade zone by providing the basic infrastructure many businesses struggle to access in Nigeria.

According to him, the goal is to create a business environment where investors can move in and operate with fewer obstacles.

“We want to create the biggest free trade zone where investors can just come and plug in. We will generate power, provide infrastructure and remove the bottlenecks around doing business,” Dangote said.

A Plug-and-Play Industrial Hub

The planned Olokola free trade zone will include investments in power generation, gas infrastructure, cement production and manufacturing.

Dangote said the project is being designed to solve some of the biggest challenges facing Nigerian industries, especially unreliable electricity.

For decades, poor power supply has increased production costs for manufacturers across the country. Many companies spend heavily on diesel, gas and self-generated electricity to stay in business.

Dangote’s proposed model aims to reduce that burden by building a dedicated power system for companies operating within the zone.

The industrial zone will also include water supply, logistics support and other facilities needed for large-scale manufacturing and export-focused businesses.

Gas Pipeline to Support Heavy Industry

Dangote also revealed plans to integrate gas infrastructure into the project.

The proposed east-west gas pipeline corridor will support energy-intensive industries and help companies access more reliable energy for production.

This could make the zone attractive to investors in cement, manufacturing, petrochemicals, processing and other industrial sectors.

The Olokola location also gives the project a strategic advantage. Its coastal position and proximity to the Lagos-Calabar Coastal Highway could improve access to major transport routes and reduce logistics costs for investors.

Ondo Governor Welcomes Investment

Governor Lucky Aiyedatiwa welcomed the proposal and described it as a major boost to Ondo State’s industrialisation agenda.

He said the project aligns with his administration’s goal of positioning Ondo as a strong investment destination in South-West Nigeria.

Aiyedatiwa noted that the state’s location along the Lagos-Calabar Coastal Highway corridor gives it a unique advantage for trade, logistics and industrial expansion.

He also highlighted Ondo State’s deep seaport licence, saying it could help attract investors by supporting the movement of large cargo vessels without the need for transhipment.

The governor added that limestone deposits in the state have been tested and found suitable for industrial use. This could support Dangote Group’s planned cement production expansion in the area.

Technical Committee Set Up

Aiyedatiwa said the state government has already set up a technical committee to engage with the Dangote Group.

The committee will work on legal, land, community and operational issues linked to the proposed project.

He also said the state is ready to nominate a representative to the project board as discussions move forward.

The governor assured Dangote Group of the state government’s full support. He said his administration would work with investors and host communities to ensure the project succeeds.

Why the Project Matters

The Olokola Free Trade Zone has been discussed for many years as a potential industrial, maritime and logistics hub.

Its coastal location makes it suitable for large-scale manufacturing, export processing, energy projects and port-related activities.

If successfully implemented, Dangote’s renewed plan could unlock new investment in Ondo State, create jobs, support local businesses and strengthen Nigeria’s industrial base.

The project could also help reduce some of the infrastructure challenges that discourage investors from setting up factories in Nigeria.

For Ondo State, the proposed zone represents a major opportunity to move beyond natural resources and build a stronger industrial economy.

For Nigeria, it could become another test of how private capital, state government support and strategic infrastructure can work together to accelerate industrial growth.