FOR IMMEDIATE RELEASE
ONDO STATE GOVERNMENT PROVIDES COMPREHENSIVE CLARIFICATION ON INVESTORS, FINANCING CAPACITY, AND GOVERNANCE STRUCTURE FOR MAJOR INDUSTRIAL PROJECTS
The Ondo State Government, through the Ondo State Development and Investment Promotion Agency (ONDIPA), provides detailed clarification on the investors, financial capacity, governance structure, and institutional safeguards guiding the State’s ongoing large-scale industrial investments.
This statement addresses public interest and ensures clarity regarding the Port of Ondo Deep Sea Port, and the Integrated Fertilizer Plant.
These projects are structured strictly under private-sector financing, performance-based land allocation, and internationally recognized Public-Private Partnership (PPP) frameworks.
1.$1.4 BILLION DEEP SEA PORT PROJECT STRUCTURED UNDER PRIVATE CAPITAL AND FEDERAL CONCESSION FRAMEWORK
The Ondo State Government through her investment agency ONDIPA has reaffirmed that the proposed Multi-purpose Port Ondo Project is a fully structured, private-sector–driven infrastructure development valued at US$1.4 billion, with no financial burden on the state treasury and no transfer of sovereign assets.
Recent public commentary has raised concerns regarding financing, ownership, and transparency. The Government clarifies that the executed Memorandum of Understanding (MOU) reflects a standard Public-Private Partnership (PPP) concession model consistent with Nigerian maritime regulatory requirements and global infrastructure best practices.
Project Structure and Legal Framework
The Ondo State Government entered into a formal MOU with MITARK Consulting Limited, Hong Kong, for the development of a multi-purpose deep seaport located at Erunna/Ogboti, Ilaje Local Government Area.
The project is structured under a federal concession framework in which the Nigerian Ports Authority (NPA) retains statutory authority over port development in Nigeria.
The Special Purpose Vehicle (SPV) established for the project —Port Ondo Development Limited has been duly incorporated as the concessionaire Project Company.
Shareholding Structure:
MITARK& Partners–85%
Ondo State Government –12.5%
Nigerian Ports Authority –2.5%
MITARK holds the controlling equity position due to its responsibility for capital mobilization, technical partnerships, and overall project execution. The Ondo State Government maintains a minority equity participation of 12.5%, reflecting strategic involvement without financial exposure.
No Public Funding Commitment.
The approved Full Business Case confirms that the Phase 1 capital expenditure of US$1.4 billion will be sourced entirely by private investors.
The MOU does not obligate the Ondo State Government to finance any portion of the development cost.
The State Government role is facilitative and includes:
- Provision of the Port site (Certificates of Occupancy issued in favor of NPA, which subsequently concessions the land)
- Facilitation of Federal approvals and statutory authorizations.
- Provision of existing technical studies, including the Full Business Case
- Creation of an enabling regulatory and business environment.
Federal Regulatory Compliance
The project has followed all required federal regulatory procedures involving:
- The Nigerian Ports Authority (NPA)
- The Infrastructure Concession Regulatory Commission (ICRC)
- The Federal Ministry of Marine & Blue Economy
- Revalidation by the Federal Executive Council (FEC) in December2025
Key milestones achieved include:
- Completion of feasibility, Environmental & Social Impact Assessment (ESIA),
geotechnical, hydrographic, and master plan studies. - Preparation of an Outline Business Case
- Preparation and approval of a Full Business Case by KPMG
- Federal Executive Council Approval
This confirms alignment with Nigeria’ concession-driven maritime infrastructure framework.
Financial Capacity and Strategic Partnerships
MITARK Consulting Limited is a Hong Kong-based private investment and project development company. The company has secured strategic technical partnerships with:
China State Construction Harbour and Channel Engineering Group Co. Ltd.
Shandong Port Yantai Port Group Co. Ltd.
The company has also secured full financing commitment for the project from African Export- Import Bank (Afrexim bank) in the amount of US$1.4 billion.
The MOU contains standard exclusivity provisions designed to protect financing stability and investor confidence —a common safeguard in large-scale PPP transactions.
Under the leadership of His Excellency Dr. Lucky Orimisan Aiyedatiwa, the Executive Governor of Ondo State, the project has progressed through a structured and procedural development path:
- Execution of technical and feasibility studies
- Alignment with NPA and ICRC regulatory processes
- Federal Executive Council approval/Revalidation
- Incorporation of an SPV with defined equity participation
- Anchoring capital mobilization responsibility on the majority private investor
This approach reflects internationally recognized best practices for maritime infrastructure development.
Clarification of Key Points
- The Ondo State Government is not funding the US$1.4 billion project.
- The State is not transferring ownership of sovereign assets.
- The project is financed by private capital.
- The development operates under federal oversight through the NPA concession framework.
- The State participates as a minority equity stakeholder.
Public scrutiny of major infrastructure initiatives is appropriate and welcomed. However, assessment must be grounded in the documented provisions of the executed MOU.
The agreement clearly defines financing responsibility, equity structure, federal regulatory oversight, and the State’ facilitative role.
The facts contained in the signed documentation provide clarity and transparency regarding the Ondo Multi-purpose Deep Sea Port Project (Port Ondo).
2. ONDO STATE GOVERNMENT STRUCTURE AND SCOPE OF PROPOSED $4BILLION FERTILIZER PLANT INVESTMENT
The Ondo State Government, through her investment agency, ONDIPA, has provided clarification regarding the recently signed Memorandum of Understanding (MOU) between the Ondo State Government and Resident Fertilizer and Petrochemical Plc for the development of a proposed $4 billion integrated urea fertilizer plant.
The proposed project, to be located within the Sunshine Free Trade Zone in Erunna/Ogboti, Ilaje Local Government Area, represents one of the most significant industrial investment initiatives in the State’ history executed under the administration of His Excellency Dr. Lucky Orimisan Aiyedatiwa.
Project Overview
The investment involves the development of a 2 million metric tons per annum (2MMTPA) urea fertilizer production facility.
The project scope also includes:
- A 50-megawatt captive power plant
- A 75-kilometre gas pipeline connection from the ELPS corridor at Ore
- A 1.5-kilometre shoreline load-out jetty for marine export
The integrated design aligns with production, energy generation, gas supply, and export logistics, positioning the facility as a comprehensive industrial ecosystem rather than a stand-alone manufacturing plant.
Investment Structure Under the terms of the MOU:
Resident Fertilizer and Petrochemical Plc will be responsible for the development, financing, construction, and operation of the plant.
The estimated $4 billion capital expenditure will be fully funded by the investor.
The Ondo State Government will provide land within the Free Trade Zone, facilitate required permits and approvals, and ensure an enabling business environment, including infrastructure support and security.
The State Government is not providing capital financing for the project, nor is it divesting public assets.
Equity Participation
The proposed project structure provides for minority equity participation by the Ondo State Government in collaboration with host communities. This arrangement allows the State and its host communities to share in the long-term economic value of the project without assuming construction, financing, or operational risks, consistent with internationally recognized Public- Private Partnership (PPP) practices for large-scale industrial investments.
Dedicated Project Company
The fertilizer project will be executed through a dedicated project company structure, in line with global best practices for major energy, petrochemical, and infrastructure developments. Such special purpose vehicle (SPV) ensures ring-fenced governance, financing clarity, and operational accountability. Resident Fertilizer and Petrochemical Plc was incorporated in 2025 specifically to execute the fertilizer project and serve as the special purpose vehicle with defined governance and implementation responsibilities.
The $4 Billion investment is promoted by Resident Cement Group, an industrial group active in Nigeria’ heavy manufacturing sector, including a $1.5 Billion cement production investment.
Strategic Economic Impact
When executed to completion, the 2MMTPA fertilizer plant is expected to:
- Strengthen Ondo State’s position within Nigeria’s fertilizer value chain
- Stimulate marine logistics and export activity
- Catalyze industrial clustering within the Sunshine Free Trade Zone
- Enhance gas utilization and captive power generation infrastructure
- Create over 5000 direct job opportunities for host communities and residents of Ondo State.
The MOU represents the preliminary framework stage of the project lifecycle and precedes detailed shareholder agreements, financial close, regulatory approvals, and eventual construction.
Commitment to Transparency
The Ondo State Government reiterates that:
The investor bears full responsibility for project financing.
The State Government’s role is land allocation and facilitation within the Sunshine Free Trade Zone.
The State and host communities hold a minority equity interest in the project.
The Ondo State Government, under the leadership of His Excellency Dr. Lucky Orimisan Aiyedatiwa remains committed to structured, transparent, and long-term industrial development initiatives that expand economic opportunities and create sustainable value for present and future generation of residents in Ondo State.
Signed
Louis Okoh
Communications / Press Officer ONDIPA
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