By Babajide Komolafe
Ogun State Government has identified three major capital projects estimated to cost $43.26 million (N6.5 billion) among others requiring financing by banks in the state. Otunba Gbenga Daniel, the state governor disclosed this at an interactive session with the Central Bank of Nigeria and the Bankers’ Committee in Lagos.

The identified projects are the Gateway International Airport Project (Phase I) estimated to cost $28.3 million, Olokola Deep Sea Port Project (Phase 1) $1.16 million and a Diagnostic and Trauma Centre project expected to cost $13.8 million.

Other projects considered requiring financing by the Banks include Light Rail Project, Abeokuta Central Business District Project, Gateway Power Projects among others.

Daniel who made a brief demo of the proposed airport reiterated his passion and personal commitment to the project. Highlights of his presentation showed that the state has witnessed increased production in agriculture with the establishment of processing industries.

According to the Governor, “The level of commercial activities has increased significantly because the population increase in the state through influx of people and improved purchasing power are evident. As such, new manufacturing companies are being established in the state while old ones are being revitalized”.

He added that the real estate sector is currently one of the most active sectors of the state economy, providing means of livelihood to many and that the is also improving infrastructure through construction of power plants, roads, gas and water supply as well as promotion of  a number of SMEs statewide.

In the area of access to land, the State Governor said the reform programme in the lands sector of the state has significantly aided business expansion, cutting across all economic sectors of the state.

The Governor also noted that internally generated revenue has witnessed a phenomenal growth of more than 1000 per cent as revenue has grown from an average of about N100 million monthly to about N1 billion over the last seven years and it is still on the rise.

Speaking on economic potentials of the state, Daniel said proximity to Lagos offered potential for fast_paced real estate sector growth, availability of vast agricultural resources statewide, large uncluttered land for development of Industrial enclaves, openning to the Atlantic Ocean (18m water depth without dredging) and availability of vast solid mineral resources are inherent value in Ogun State.

He emphasized the fact that the economic agenda of the government is to transform the state into a South West regional transportation hub through the development of airport, seaport, rail transport facilities as well as transformation of the state into a designated cargo hub; an industrial and commercial hub, expansion of the IGR of the state and sustainable development of the state.

Given assurances of the commitment of the Bankers Committee to providing positive partnership on socio_economic initiatives, Mallam Sanusi Lamido Sanusi, Governor, Central Bank of Nigeria and the Chairman of the Bankers Committee, restated the objective of the interactive session with the Executive Governor of Ogun State, saying the interaction is a part of efforts of Committee to take deliberate actions towards ensuring that Nigerian banks play their role as financial intermediaries, and drive the development of the real economy.

Corroborating the CBN Governor, Mr. Aigboje Aig_Imoukhuede, Chairman, Sub_committee on economic development said the Bankers’ Committee is committed to supporting state governments and agencies with well_articulated policies and plans, and would seek an environment for continuous engagements with governments and agencies to generate a pipeline of projects that the financial sector would participate in.

In his response to questions from participants at the meeting, the governor said there is collaboration between Lagos and Ogun states and that project proposals  are collaborative  e.g. the proposed Lagos State Light Rail system will terminate at Isheri and Ogun State will extend the line from Isheri to the location of the airport.

He said the location and natural depth at Olokola present unique commercial advantage that cannot be matched by any other location in Nigeria making this the most feasible and commercially viable deep sea proposition.

An additional benefit is that Olokola is also the site of the single largest LNG deposit in the world.
The governor stated that all projects are top priority and all are equally feasible. None of the projects is designed to be run by the government. The framework is private sector led and will be managed as such.