Ondo signs $362m titanium mega-plant deal, first in Nigeria

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Read History Go to My Account Log Out Enhanced by Google News Ondo signs $362m titanium mega-plant deal, first in Nigeria The Ondo State Government has signed a Public-Private Partnership (PPP) agreement with PyVee Limited, a U.S-linked chemical manufacturing company, to

Listen to this article Share The Ondo State Government has signed a Public-Private Partnership (PPP) agreement with PyVee Limited, a U.S-linked chemical manufacturing company, to develop West Africa’s first and Africa’s second fully integrated titanium value-chain processing plant.

The agreement, which was signed on Saturday at the office of the Secretary to the State Government, Alagbaka Akure, facilitated through the Ondo State Development and Investment Promotion Agency (ONDIPA), positions Ondo State at the forefront of a new industrial and strategic minerals corridor linking Nigeria to the United States aerospace and defence supply chains.

BusinessDay reports that under the partnership, the State Government has allocated 100.079 hectares of land at Alape, along the Igbokoda–Ugbonla Road in Ilaje Local Government Area, a site strategically selected for its access to lagoon water, gas infrastructure for captive power generation, and proximity to the Deep-Sea Port and export logistics along the Lagos–Calabar Coastal Corridor.

Peter Oladipupo, Founder and CEO of PyVee Limited, while speaking with newsmen, said that beyond the land allocation, the State Government will provide an enabling environment for the project through facilitating access to raw materials, supporting the acquisition of requisite licences, permits and regulatory approvals, providing critical infrastructure within the project area, and coordinating the resolution of host community-related matters to ensure the seamless implementation and long-term sustainability of the investment.

According to him, “Structured through a joint-venture Special Purpose Vehicle (SPV), PyVee Nigeria Titanium Limited, the project has an estimated total capital outlay of US$362 million across two developmental phases. The first phase entails the construction of a commercial pilot plant, while the second phase will see the development of a full-scale titanium processing complex, with combined investment requirements exceeding US$350 million.

“Together, the two phases are projected to generate more than N300 billion in annual gross economic value for Ondo State and over N480 billion nationally, while creating more than 150 direct jobs in Phase 1, over 800 direct jobs in Phase 2, and more than 5,000 additional indirect and induced jobs.

“The proposed facility will process Nigeria’s abundant ilmenite ore locally instead of exporting it in raw form, helping to reduce dependence on imported titanium products.

“The titanium-processing modular plant will be fabricated by a U.S. fabrication partner and shipped to Nigeria for installation and commissioning. The plant will produce titanium dioxide pigment and titanium sponge, while providing a platform for the future production of additional strategic materials, including niobium-titanium alloys and selected rare earth products, through an integrated chemical-processing system.

“PyVee Limited, the project proponent, is a Nigerian company that designs, develops, deploys, and operates modular chemical manufacturing plants for the production of critical materials and chemicals and the diversification of global supply chains. The company develops chemical and critical-minerals processing projects from process development and engineering through feasibility, financing, and commercial partnerships, with a focus on modular plant solutions that can be deployed across Africa.

“The company’s advisory board includes Purdue University engineering faculty, a former DuPont vice president, and Nigerian industry and policy figures, and its technical team draws on experience from the Dangote Petroleum Refinery and Petrochemicals complex.”

Oladipupo, a native of Ogun State, said further, “This agreement marks an important step in moving our titanium-processing project from development toward implementation; our objective is to build the processing capabilities needed to create greater value from Africa’s mineral resources, while developing industrial partnerships that connect African critical-mineral value chains with global markets.

“With land allocation now secured, the immediate priorities are on the $12 million Phase 1 pilot plant, mobilisation, and construction, with commercial operation of the pilot targeted roughly 21 months from the date of this agreement.”

Emmanuel Omomowo, CEO of the Ondo State Development and Investment Promotion Agency (ONDIPA), spoke to the agency’s role in structuring and de-risking the transaction for both parties, from due diligence on PyVee’s technical and financial capacity to the equity-for-land arrangement that gives the State a stake in the Special Purpose Vehicle rather than a one-off payment.

“By taking equity instead of cash for the land, Ondo State isn’t just a host, we’re a partner whose fortunes rise with the project’s success, and that’s the model we want to replicate across future investments,” he said, describing the deal as a template for future PPP-driven industrial projects in the state,” Omomowo said.

Taiwo Fasoranti, the Secretary to the Ondo State Government, who spoke on behalf of the State, framed the partnership as a direct expression of Governor Aiyedatiwa’s industrialisation agenda, noting that the administration’s task is to ensure the state’s mineral wealth translates into local jobs, technology transfer, and sustained revenue rather than raw exports.

Fasoranti said, “This is exactly the kind of partnership our administration has been working toward, one where Ondo State’s resources stay home long enough to create value, jobs, and lasting revenue for our people.”

He, however, reaffirmed the commitment of the state government to seeing the project through from land allocation to commissioning, and positioning Ondo State as a serious destination for foreign direct investment in the mining and materials sector.