Kogi Launches Free Trade Zone Targeting $2–$5bn FDI in Seven Years

Daftar Isi

Ajaokuta Economic City Unveiled as Major Industrialization Initiative

Kogi State has officially launched the Ajaokuta Economic City, a groundbreaking project expected to attract between $2 billion and $5 billion in foreign direct investment over the next seven years. This initiative, also known as the Kogi-Hunan Free Trade Zone, is considered the most ambitious industrialization effort in the state's history.

The event was attended by government officials, private-sector representatives, and a delegation from China. It marked the official start of operations for the free trade zone, which had previously received approval from the Federal Government. The unveiling signifies a significant step forward in Kogi’s economic development plans.

Governor Ahmed Usman Ododo emphasized that the launch represents a "monumental milestone" in the state’s economic evolution. He described the Ajaokuta Economic City as one of the most visionary projects in the nation’s history, highlighting its potential to reshape how Kogi engages in national and global commerce.

Ododo explained that the free trade zone was developed through extensive collaboration, including technical evaluations and consultations with the Zhuzhou Municipal Government of Hunan Province, Nigerian institutions, and private-sector stakeholders. He also announced the creation of a dedicated security framework for the city, ensuring the protection of life, infrastructure, and capital.

Security, according to the governor, is a top priority. He stated that his administration has strengthened intelligence operations, improved surveillance systems, and deepened cooperation with national security agencies. Ododo stressed that secure environments are essential for attracting investment and that Kogi is committed to maintaining this standard throughout the project’s development.

The governor addressed critics who question the visibility of his administration’s achievements. He noted that while some people may be vocal about his work, his focus remains on serving the people of Kogi. He invited journalists and stakeholders to participate in an unprecedented three-week inspection and commissioning tour starting January 3, emphasizing transparency and open governance.

Ododo expressed gratitude to development partners, investors, and citizens, calling the Ajaokuta Economic City a "seed of generational prosperity." He believes it will position Kogi as a key industrial and commercial hub in Nigeria.

Aliyu Inda Salami, Chief Economic Adviser to the Governor and CEO of the Kogi State Investment Promotion and Public Private Partnership Agency (KSIPPA), highlighted the significance of the free trade zone. He mentioned that the project covers 4,000 hectares of land and has received presidential approval. Salami praised Governor Ododo for leading the initiative and emphasized the project’s role in expanding Kogi’s revenue base and accelerating its integration into global value chains.

The Chinese delegation, led by Mr. Li Zhensheng from the Zhuzhou Municipality of Hunan Province, reaffirmed their commitment to the partnership. They described the collaboration under the Kogi-Hunan Sister Province Relationship as a strategic long-term investment in industrial development, technology transfer, and trade expansion. Li called the Ajaokuta Economic City a "flagship cooperation project" with great potential for joint prosperity.

Dr. Sanni Abdullahi Ozomata, the Governor’s Technical Adviser, presented detailed projections for the project. He noted that the Kogi Free Trade Zone is expected to attract between $2 billion and $5 billion in foreign direct investment over seven years. The zone is projected to create at least 50,000 direct and indirect jobs, with Phase One targeting 10,000–15,000 jobs. Additional benefits include $500 million in annual export value within five years, a 100-megawatt power facility, and extensive opportunities in agro-processing, logistics, mining, manufacturing, technology, and innovation.

Ozomata also highlighted Kogi’s strategic advantage as Nigeria’s central logistics hub, bordered by ten states and the Federal Capital Territory. The state is rich in mineral and agricultural resources, making it an ideal location for industrial growth.

Asiwaju Asiru Idris, Kogi’s Commissioner for Finance, Budget and Economic Planning, urged investors to seize the opportunity. He emphasized that Kogi has established a strong institutional and legislative framework to ensure investment success. He questioned why major players like Dangote and Mangal have already invested in the state while others have not.

The Ajaokuta Economic City marks a pivotal moment in Kogi’s journey toward becoming a major industrial and commercial center. With its comprehensive vision and strategic advantages, the project is set to drive sustainable growth and transform the region’s economic landscape.