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KOGI-HUNAN SPECIAL ECONOMIC ZONE AND OTHER GAME CHANGERS FOR DEVELOPMENT IN THE STATE

Ismaila Isah by Ismaila Isah
March 3, 2025
in National
Reading Time: 4 mins read
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The Kogi State Governor, Ahmed Usman Ododo
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A quiet revolution is unfolding in Nigeria’s North-central geopolitical region and it is certainly a game changer in the making.

Kogi State, under the leadership of His Excellency Governor Ahmed Usman Ododo, has emerged as a beacon of economic transformation and smart governance. The recent announcement of the of commitment towards the take off of Kogi Hunan Special Economic Zone (SEZ), set to operate as a Free Trade Zone (FTZ), marks not just a turning point for Kogi state but a veritable game-changer for the entire North-Central region and Nigeria at large.

Since taking office on January 27, 2024, Governor Ododo has embarked on 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 ground-breaking and launch of 5 mini-Liquefied Natural Gas (LNG) plants in Ajaokuta, Kogi state – a private-sector driven initiative by a consortium headlined by the Nigeria National Petroleum Corporation Limited (NNPCL) on the heels of the commencement of full production by the $1.5 billion, 6000 tons per day Mangal Cement Plant (which brings the total number of cement plants in the state to two) are testaments to this fact.

These achievements are pointers to the state’s growing appeal to both domestic and foreign investors.

The Governor’s vision extends beyond lip service; it is rooted in tangible actions that align with his commitment to hit the ground running in his inaugural address in January 2024.

From revamping critical infrastructure to fostering partnerships with private sector stakeholders, Governor Ododo’s administration is laying a solid foundation for sustainable growth.

Other key initiatives include the rehabilitation of roads, urban renewal projects across the state, enhancement of power supply with the take off 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).

Against this backdrop, 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, the project exemplifies the deepening bilateral ties between Nigeria and China.
During a recent visit to Lokoja, Consul General Yan Yuqing of the People’s Republic of China underscored the significance of the initiative. “The Kogi Hunan Free Trade Zone is a strategic partnership that embodies the shared aspirations of our two nations,” she stated. Chinese investors are no doubt 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—such as the Warri-Itakpe-Ajaokuta rail line, Geregu Power Station, the massive water bodies of rivers
Niger and Benue plus ongoing gas projects—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.

This is evident in Nigeria’s experiments in Lagos, Ogun, Calabar, Kano and Katsina where FTZs have worked and are a testament to what the Kogi Hunan SEZ will become once it is operational.

As Africa’s largest economy grapples with challenges such as unemployment and inflationary pressures, initiatives like this offer a pathway to resilience and prosperity. They reinforce the importance of public-private partnerships and international collaborations in driving impactful change.

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 take off of the Kogi Hunan Special Economic Zone.

His administration’s willingness to embrace global best practices in free trade zone development further bolsters Kogi’s reputation as a forward-thinking state.

The Kogi Hunan SEZ is more than just a symbol of cooperation between Nigeria and China—it is a testament to what can be achieved when visionary leadership at the sub-national level meets pragmatic policy-making demonstrated by the federal government of Nigeria.

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.

Ismaila Isah is the Special Adviser, Media to the Kogi State Governor

Ismaila Isah

Ismaila Isah

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