Osun State Acquires $80 million Investment Push for Infrastructure and Gas Projects

Two separate investment conglomerates have pledged to invest $80 million in infrastructure and gas projects in Osun State.

This announcement was made by the Osun State Government in a statement signed by Mallam Olawale Rasheed, the Spokesperson for the Osun State Governor, and shared on the state government’s official social media account on Wednesday.

The statement detailed that the investing parties, Allegiance CNG Limited and First Tricon Construction Services Limited, specialize in sustainable energy solutions, including Compressed Natural Gas (CNG), and infrastructure development, respectively.

These companies, in a meeting with the Osun State Governor, Ademola Adeleke, and his cabinet members on Tuesday evening, outlined their respective proposed projects across various infrastructure sectors, which will be executed under Public-Private Partnership (PPP) arrangements.

Allegiance CNG Limited, as part of its commitment, plans to invest $20 million in power generation projects within the state. The company’s Managing Director, Deji Afolabi, stated that their investment in Osun State will include gas plants in each of the three senatorial districts.

As a bonus, Afolabi disclosed that Allegiance CNG Limited will ensure the State Secretariat and Government House are powered around the clock at no charge.

“We are here Your Excellency with a basket of projects and services. We propose mutually beneficial public private partnership. The Osun government will only provide land while Allegiance CNG will provide technical expertise, construction capabilities and private investment.

“Our principal financial partner is the African Development Bank. We have the funding already,, Afolabi said.

The Managing Director of Allegiance CNG Limited highlighted that the planned investment aims to significantly decrease the cost of gas per kilogram, reducing it from the current N1,400 to approximately N400. This initiative, covering various segments of the gas value chain, is intended to bolster the economy of Osun and alleviate energy poverty.

Afolabi also committed to providing the governor with a sample of the household gas within the next two weeks, showcasing the project’s potential impact.

In a separate presentation, Otunba Olumuyiwa, the Chairman of First Tricon Construction Services Limited, conveyed his company’s enthusiasm for the Governor’s infrastructure initiatives.

He disclosed that his company has had to reallocate a $60 million investment fund towards developing roads, bridges, water systems, and housing projects throughout Osun State.

Olumuyiwa commended the Governor for bolstering investor confidence through his detailed policy reforms. He highlighted the company’s extensive experience in managing large-scale infrastructure projects not just in Nigeria but also in Sierra Leone, Guinea, and Liberia, showcasing their capability and expertise in the field.

He delivered comprehensive presentations to the Governor and his team about various proposed infrastructure projects, emphasizing that the company operates across multiple sectors, including the construction of roads, bridges, and housing, supported by funding from a diverse group of investors and endorsed by leading financial institutions.

Olumuyiwa assured that the company’s approach is designed to avoid imposing financial encumbrances on the state, highlighting its robust and positive relationships with financial institutions that facilitate project sponsorship.

“We have a very good relationship with our banks and investors. When we see what we can deliver as in Osun, we have the capacity to do it. We are here because this is our country, this is our state. We are ready to work with you to meet the housing and infra needs of our people,” Olumuyiwa stated.

Governor Adeleke, in his response to the company leaders, conveyed Osun State’s commitment to streamlining business operations through a fast-tracked ease of doing business initiative, aiming to attract further investment into the state.

He expressed enthusiasm about the substantial proposals presented, noting the positive changes and growing interest from various sectors in Osun.

The Governor highlighted the state’s readiness, boasting of available land and a conducive environment, likening Osun to a vast construction zone open for development. Also, he extended a warm welcome to the firms ready to commence their projects.