How Strategic Investments, Fiscal Reforms, Industrial Expansion and Bold Infrastructure Projects Propelled Ogun State to Become Nigeria’s Second Best-Performing State and One of the Nation’s Fastest-Growing Economies

When the 2025 State Performance Index (pSPI), released by Phillips Consulting, ranked Ogun State second only to Lagos among Nigeria’s 36 states and the Federal Capital Territory, it validated what years of strategic investments in infrastructure, industrialisation, logistics, and fiscal reforms had already signposted.

Since assuming office on May 29, 2019, Governor Dapo Abiodun has pursued a development agenda anchored on connectivity, economic expansion, and sustainable revenue growth. The result is a state increasingly regarded as one of Nigeria’s most competitive destinations for investment and industrial activity.

Importantly, the pSPI is not a political award. The index combines 70 per cent objective performance data drawn from audited records covering fiscal management, infrastructure, healthcare, education, and economic output, with 30 per cent citizen perception surveys. Ogun’s emergence as the nation’s second-best performing state reflects measurable outcomes rather than political sentiment.

## Economic Growth Backed by Data

Any assessment of Ogun State’s transformation begins with the numbers.

When Governor Abiodun took office in 2019, the state’s Gross Domestic Product (GDP) stood at approximately ₦2.9 trillion. By 2024, it had risen to ₦7.3 trillion, while projections based on expanding industrial productivity place the figure closer to ₦17 trillion.

Internally Generated Revenue (IGR) has followed a similar trajectory. From about ₦50.6 billion in 2020, IGR rose to ₦100.7 billion in 2021, climbed to ₦146 billion in 2023, and reached nearly ₦192 billion in 2024. The state is targeting ₦250 billion in 2025 and ₦500 billion by 2026.

The growth has been driven by tax digitisation, the elimination of multiple taxation, improved compliance, and the expansion of industrial activities across the state.

Reflecting its growing economic capacity, Ogun’s 2025 Budget of Hope and Prosperity stood at ₦1.054 trillion, with over ₦600 billion dedicated to capital projects. Infrastructure, education, and healthcare received the largest allocations, reinforcing the administration’s emphasis on long-term development.

## Building Prosperity Through Roads

One of the most visible achievements of the Abiodun administration has been its extensive investment in road infrastructure.

More than 1,700 kilometres of roads have been constructed or rehabilitated across the state since 2019. These projects include the reconstruction of the Abeokuta-Sagamu Expressway and intervention works on the Lagos-Ota-Abeokuta Expressway, one of Nigeria’s busiest commercial corridors.

After more than two decades of jurisdictional disputes stalled progress on the Lagos-Ota-Abeokuta road, the state government secured federal approval and commenced reconstruction in 2024.

Road projects have also been executed across industrial and agricultural corridors in Ifo, Sango-Ota, Idiroko, Remo, Yewa, and Ijebu areas, improving mobility, reducing logistics costs, and strengthening economic integration.

For the administration, roads are more than physical infrastructure; they are economic assets that facilitate trade, attract investment, and improve competitiveness.

## The ISEYA Development Framework

The administration’s governance philosophy is encapsulated in its ISEYA agenda—Infrastructure, Social Investment, Education, Youth Empowerment, and Agriculture.

Under this framework, infrastructure development has remained a priority, while investments in healthcare, education, housing, youth development, and agriculture have sought to ensure inclusive growth.

The revitalisation of primary healthcare centres, recruitment of teachers, rehabilitation of schools, support for small businesses, youth skills acquisition programmes, and agricultural interventions have all contributed to improvements in human capital development.

The strong citizen perception scores recorded in the pSPI suggest that residents are experiencing tangible benefits from these investments.

## Gateway Airport and Aviation Connectivity

A major milestone in the administration’s infrastructure drive was the completion of the Gateway International Agro-Cargo Airport.

The airport received its first commercial flight in February 2023, marking a historic moment for Ogun State. Strategically located to serve industrial clusters along the Lagos-Ogun corridor, the facility was designed to provide manufacturers and exporters with faster logistics options and strengthen the state’s export competitiveness.

The project has received commendation from prominent national figures, including former President Olusegun Obasanjo and former Vice President Yemi Osinbajo, both of whom described it as a significant economic asset.

Complementing the airport is the Gateway Airline initiative, aimed at improving regional connectivity and supporting business travel.

## Kajola and Mojoda Dry Ports: Redefining Logistics

Among the administration’s most transformative economic initiatives are the Kajola and Mojoda Dry Ports.

The Kajola Dry Port, located near the Lagos-Ibadan Railway corridor, was conceived as an inland cargo terminal that enables importers and exporters to process goods closer to their businesses rather than relying exclusively on congested seaports.

The facility is supported by the Kajola Specialised Railway Industrial Free Trade Zone, a partnership expected to unlock substantial industrial investment and employment opportunities.

In 2025, the Federal Government approved a second dry port in Mojoda, Ijebu-Ode. Situated on 130 hectares, the facility is expected to serve as a major cargo consolidation and distribution hub for the Southwest region.

Together, both projects position Ogun as a critical logistics gateway for Nigeria’s manufacturing and export sectors.

## Industrial Expansion Across the State

Ogun remains one of Nigeria’s foremost industrial destinations, with major companies operating within its borders.

The administration has prioritised the rehabilitation of key industrial corridors, particularly the Agbara-Atan-Lusada axis, which hosts numerous multinational firms.

Improved infrastructure within these industrial zones has enhanced operational efficiency and encouraged further investment.

Beyond Agbara, the state has expanded industrial development through initiatives such as the Remo Economic Industrial Cluster, a partnership with ARISE Integrated Industrial Platforms valued at approximately $400 million.

These efforts have ensured that industrial growth is spread across the state’s three senatorial districts.

## A Multimodal Transport Strategy

Governor Abiodun’s long-term vision extends beyond roads.

The administration is pursuing a multimodal transport strategy that integrates road, rail, air, and maritime infrastructure. Existing rail connections, the Gateway Airport, proposed port projects, and an extensive road network are being developed as interconnected assets designed to reduce transportation costs and improve supply chain efficiency.

This integrated approach strengthens Ogun’s position as a strategic logistics hub serving both Nigeria and the wider West African market.

## Creating an Investor-Friendly Environment

Infrastructure development has been matched by reforms aimed at improving the ease of doing business.

Through agencies such as OgunInvest and the Business Environment Council, the administration has streamlined investment processes, digitised tax administration, reduced bureaucratic bottlenecks, and actively engaged local and international investors.

The results have been significant. Ogun now hosts more than 6,000 registered industries and continues to attract substantial domestic and foreign investments across manufacturing, logistics, tourism, housing, and agro-processing.

The state’s growing reputation as a business-friendly destination has further strengthened its economic profile and revenue base.

## The Phillips Consulting Verdict

The 2025 State Performance Index evaluated states across key indicators, including fiscal management, infrastructure, healthcare, education, economic performance, and citizen satisfaction.

Ogun’s second-place ranking confirms that its development is the product of deliberate policy choices and sustained execution rather than geographical advantage alone.

The assessment also validates the administration’s ISEYA framework, demonstrating that strategic investments in infrastructure, human capital, and economic development can deliver measurable outcomes.

## A Model of Deliberate Development

The transformation of Ogun State under Governor Dapo Abiodun illustrates how governance can drive economic growth when policies are designed to complement one another.

Roads improved access to industrial hubs. Industrial growth expanded the tax base. Increased revenues funded additional infrastructure, while logistics projects strengthened the state’s attractiveness to investors.

From GDP growth and rising internally generated revenue to extensive road construction, aviation infrastructure, dry ports, industrial expansion, and national recognition through the pSPI ranking, Ogun State’s development trajectory reflects a deliberate effort to position the state as one of Nigeria’s leading economic centres.

As major projects near completion and new investments continue to flow in, the challenge ahead will be sustaining the momentum and consolidating the gains already achieved.