ECONOMIC YORÙBÁNISM: Borderless Alliance of South-West For Economic Development [BASED]
Economic Yorùbánism in the twenty-first century is a wake-up call and an existential survival instinct in the contemporary world; Yorùbá are destined to break the Black/African Jinx of Poverty.
Following the completion of two distinct pieces on Yorùbáland titled:
This article focuses on the South-West Geopolitical Region’s economic integration, which breaks down state borders, tames state government bureaucracy, and channels individualism and pocketization of developments towards coordinated, collective, and significant developments.
The term BASED, which stands for Borderless Alliance of South-West For Economic Development, refers to the concept of seeing the South-West as a single economic entity that extends beyond state-level economic development or footprint, where Lagos, Ondo, Ogun, Èkìtì, Ọṣun, and Òyó States are not collaborating.
The concept is to have a single regional development plan that goes beyond state-level plans.
In my earlier piece, “Nigeria’s Yorùbáland Geo-Economy: Prospects and Plans,” I divided Yoruba into two economic zones: the Western Corridor, which includes Lagos, Ogun, and Òyó, and the Eastern Corridor, which includes Ondo, Èkìtì and Ọṣun.
How Does BASED Operate?
We must first recognise that governments around the world do not have limitless resources or assets to carry out every development they imagine; in fact, this is the reason why some nations or states are wealthier than others. Additionally, the revenue capacities of the South-West States (IGR, FAAC, and 13% Oil Derivation) differ, and as a result, the states’ budgets and capacities for project implementation varies.
The South-West Development Commission (SWDC), O’dua Investment Company Limited (OICL), the DAWN commission, and state governments
Each of the Six (6) states that make up the South-West Geopolitical Region has 16.66% of the OICL.
OICL’ revenue has increased significantly, and it now pays each state year after year.
Total comprehensive revenue of ₦82.26 billion, up 773% due to revaluation gains (₦9.23 billion in 2023).
Operating revenue increased by 81% to ₦7.15 billion from ₦3.95 billion in 2023.
Dividend of ₦518 million, up 21% from 2023.
Dividends totaling ₦3.63 billion since 2013.
Additionally, the establishment of a “South-West Security Fund” under the DAWN commission was one of the outcomes of a recent summit between the Governors of the Six (6) South-West states.
The goal of BASED is to extend this template beyond security to include financial and economic development.
With BASED, all South-West States can contribute counterpart funds to specific projects that will have a high return on investment for the collective economy in a Public-Private Partnership Model, thereby realising economic development with outstanding footprints across the region.
These areas are where BASED can be focused
Marine and Blue Economy
Agribusiness and SAPZ
Logistics and Transportation
Oil, Gas and Energy
Light Manufacturing and Technology
IT, Creative and Digital Economy
Marine and Blue Economy: ONDO Multipurpose Deep Sea Port:
Ondo State has sea access but no sea port, and because of that, Yorùbáland’s Eastern Economic Corridor lacks a Sea Port.
In the Eastern Economic Corridor, Ondo State is the closest to the sea among the Hinterland States of Èkìtì and Ọṣun, yet it lacks a sea port.
Ondo, Èkìtì, Ọṣun, and possibly any other South-West States, SWDC, Odua Investment Company Limited, The Federal Government, and Private Investors can all contribute counterpart funding to the construction of the Ondo Multipurpose Deep Sea Port in presumed equity through a PPP arrangement:
Assuming the Total Cost is $1.5B the distribution could be as proposed below:
With the construction of the Port, The states of Ọṣun and Èkìtì will not only have access to the global trade and maritime network through the sea port in Coastal Ondo, but they will also have a stake in the revenue generated from all of the port’s activities, as well as employment opportunities for their citizens. Logistics and transportation policy & investment also have direct consequence to this likewise is the improvement of warehousing and especially cold storage which will ensure our export becomes competitive and provide our citizens better options in the global market.
Logistics And Transportation: Railway and Warehousing:
A freight and cargo railway that connects the hinterlands of Èkìtì and Ọṣun States with the Ondo coasts to the port and warehouse for product import and export.
These multipurpose warehouses have long vehicles, cold storage vehicles, dry and cold storage facilities, and other features for product distribution and point-to-point transportation.
For export, interconnected rail network across the aforementioned states will be quite benefitail here. The goods will be transported from these aggregation depots’ stations to Ondo Sea Port; for import, they do the opposite. Likewise, the investment in electricity & cold storage including well located warehousing will have a direct incremental impact on our export potential. Increasing the shelf life of good not only provide more opportunities for exports/imports, it also increase the viability of varied options/businesses locally. These will have a variety of implications on the South-West economy and create jobs for the region’s expanding youth population.
Along the ongoing Lagos-Calabar Coastal Highway Project, a Y-shaped standard track railway runs from Ọṣun to Èkìtì to Ondo Coast. The left branch of the Y connects to Òyó” while the I branch connects to Ogun.
Agribusiness and SAPZ
Using the BASED initiative, participating states in the South-West, FG, private investors, OICL, SWDC, DAWN commission, AFDB, IDB, and other local and international partners, such as UNICEF and FAO, may designate to establish a total of 5000 hectares of “Agro Industrial Cities” in three different South-West locations. These cities will be designed and planned for arable lands for specific crops with comparative advantages, such as cocoa, palm oil, yams, vegetables, and chicken, along with their Special Processing Zones.
Establish Commercial Scale Livestock Development Centers as well as Ranches, Modern Abattoir centers, packaging, cold storage and distribution.
After that, these goods can be transported to the Ondo Port via logistics along with the critically proposed cold storage & warehousing which both benefit greatly from electricity investment and integration.
Agribusiness and SAPZ —> Logistics and Transportation —> Maritime Trade/Sea Port
Oil, Gas, and Energy
Using the BASED initiative, the South-West States, SWDC, DAWN commission, OICL, FG, and private investors or partners could contribute counterpart funding for the construction of an oil and bitumen refinery in Ondo.
Ondo State, in Agbabu, has the second-largest bitumen reserve in the world, however it has not yet been explored for commercial use. As a modifier for Agbabu natural bitumen (ANB), polyphosphoric acid (PPA) significantly enhances its performance. A 2016 study found that adding PPA, especially up to 6%, improved the bitumen’s properties by making it harder (reduced penetration), more heat-resistant (increased softening point and viscosity), and less temperature-sensitive. Fourier Transform Infrared (FTIR) spectroscopy confirmed the PPA modified the bitumen’s chemical structure. The research concludes that PPA modification can extend the service life of this abundant Nigerian resource for applications like road construction.
Assuming $14 billion is the total cost of a bitumen refinery with a capacity of 500,000 barrels per day.
Having Ondo State’s bitumen exploration and refinery, which is located near its deep sea port, produces refined bitumen, which is crucial for building road pavement all over the world.
This would establish Ondo as the world’s leading hub or producer of bitumen, which will have a variety of repercussions on both the participants’ and Ondo’s economies. It will also draw foreign exchange and foreign direct investment, and it will provide high-paying jobs for people in the South-West.
Light Manufacturing and Technology
Using the BASED initiative; producing goods aimed at final consumers or manufacturing components like cotton clothing and linen, leather and shoes, lithium battery cells and solar panels; some food items like Patent and Packaged Fast Typical Yorùbá Omi Obe in Cans for the Diaspora Yorùbá Community; iron or metals for manufacturing; snacks like Dodo Ikire, Chips, Aadun, Adire, Aso Ofi/Oke and their clothes, Yorùbá Patented Trado-medicine, etc.
Commercial resources of high-quality lithium can be found in Kwara, Òyó, and Ogun States, along with light manufacturing facilities. The Ondo Deep Sea Port can be used for the exploration, extraction, and processing of lithium to make solar panels and battery cells.
Additionally, top multinational corporations in the automotive, telecommunications, aircraft, AI and robotics, and arms industries may demand high-quality heavy manufacturing components. We don’t necessarily need to produce every part of an automobile, aircraft, vehicle, or piece of equipment, but we can produce the few parts that we have a comparative advantage in and are of the best quality, which would be highly sought after by the world’s leading businesses. Alternatively, we can consider investing further in assembling plants which will, in time, grow to manufacture and expand their capacity in time. This is a common approach which Vietnam and other crucial manufacturing nations started with.
IT, Creative and Digital Economy
Using BASED Knowledge And Innovation Parks and Clusters can be established, an example is the ongoing Èkìtì Knowledge Zone in Èkìtì State. In Ọṣun we have a relatively low cost state which can likewise be developed in this direction to cater for our entrepreneurial needs. These states can, with the integration into Lagos & Ogun develop Yoruba land further with comprehensive prosperity that reaches every corner of our land.
In Conclusion
With the advent of AI, this has provided us an opportunity to build services and scale without the burden of time and to an extent with less skill/knowledge. But what we cannot escape is the requirement of electricity, internet service and the investment in all the aforementioned areas. These investment are required to support one and other for the realisation of this dream.
We are aware that this dream begins with a step. We have observed the patience and systematic approach the South-West Development Commission (SWDC), O’dua Investment Company Limited (OICL), the DAWN commission, and state governments have taken to guide our nation towards today. We ask that continue on this path but with greater responsibility and focus for our people. We are capable of this and more.
