"Kogi State Emerges as Beacon of Economic Transformation with Kogi-Hunan Special Economic Zone"

By Ismail Isah (SA media)

A quiet revolution is unfolding in Nigeria's North-central geopolitical region, with Kogi State at the forefront. Under the leadership of Governor Ahmed Usman Ododo, the state has emerged as a beacon of economic transformation and smart governance. The recent announcement of the Kogi-Hunan Special Economic Zone (SEZ), set to operate as a Free Trade Zone (FTZ), marks a significant turning point for the state and the entire North-Central region.

Since taking office on January 27, 2024, Governor Ododo has implemented an ambitious agenda to position Kogi as one of Nigeria's premier investment destinations. His administration's focus on proactive economic policies, infrastructure renewal, and Ease of Doing Business reforms have earned dividends, elevating Kogi to rank among the top three states in Nigeria for Local Direct Investments (LDIs), alongside Lagos and Rivers states.

The recent groundbreaking and launch of 5 mini-Liquefied Natural Gas (LNG) plants in Ajaokuta, Kogi state, and the commencement of full production by the $1.5 billion, 6000 tons per day Mangal Cement Plant, are testaments to the state's growing appeal to both domestic and foreign investors. These achievements demonstrate the Governor's vision, which extends beyond lip service and is rooted in tangible actions that align with his commitment to hit the ground running.

Other key initiatives include the rehabilitation of roads, urban renewal projects across the state, enhancement of power supply with the takeoff of the Kogi state electricity market, and development of strategic corridors such as the Ajaokuta Economic hub and agro-industrial processing zones in Alape, Osara, and Ofu. These efforts have created an enabling environment that resonates with global investors, including those from China.

As evidence of this success, Fitch Ratings upgraded Kogi's credit rating to B- with a positive outlook. This recognition reflects the state's improved fiscal health, robust governance framework, and commitment to transparency. It also validates Kogi's status as a gateway state within the Nigerian federation—a status that positions it as a leading recipient of Foreign Direct Investments (FDIs).

The launch of the Kogi Hunan SEZ represents a watershed moment, situated on 3,000 hectares of land in the Ajaokuta economic development corridor. The zone promises to catalyze industrialization and spur economic diversification, backed by the government of Hunan Province and supported by the People's Republic of China.

Consul General Yan Yuqing of the People's Republic of China underscored the significance of the initiative, stating, "The Kogi Hunan Free Trade Zone is a strategic partnership that embodies the shared aspirations of our two nations." Chinese investors are eager to leverage this opportunity to drive sustainable development and foster industrial growth in Nigeria.

For Kogi, the benefits are manifold. The SEZ will create thousands of jobs, stimulate local entrepreneurship, and enhance value chains across key sectors such as manufacturing, agriculture, and energy. Moreover, its proximity to vital infrastructure ensures seamless integration into regional and national transportation and energy supply networks.

Beyond Kogi state, the impact of the Kogi Hunan SEZ will ripple through the North-Central region, unlocking latent economic potential and driving inclusive growth. By attracting FDIs and LDIs alike, the zone will serve as a catalyst for regional development, reducing poverty and improving living standards for millions of Nigerians in the region.

On a national scale, the Kogi Hunan SEZ aligns with Nigeria's broader goals of economic diversification and self-sufficiency using Free Trade Zones to stimulate economic growth. Governor Ododo's role in spearheading this transformative project cannot be overstated. Through relentless advocacy and strategic engagement, he secured the support of the Chinese government and private sector stakeholders towards the takeoff of the Kogi Hunan Special Economic Zone.

As Governor Ododo aptly puts it, "We are committed to making the Kogi Hunan Special Economic Zone a model of industrial and economic transformation." With this bold pronouncement, Kogi under Governor Ododo is not just changing its own destiny—it is reshaping the narrative of economic development. For Kogi, it is a new era of prosperity. For Nigeria, it offers hope for a brighter, more prosperous future.