Ondo seals $362m titanium deal, targets ₦480bn annual economic value
By Julius Alabi, Akure
The Ondo State Government has signed a $362 million public-private partnership (PPP) agreement with PyVee Limited to establish a titanium processing plant in Ilaje Local Government Area, in a move projected to generate more than ₦480 billion in annual gross economic value nationally and strengthen Nigeria’s drive towards industrialisation and import substitution.
The proposed facility, expected to become West Africa’s first fully integrated titanium value-chain processing plant, is designed to transform Nigeria’s mineral resources into high-value industrial products, create jobs, attract foreign investment and expand the country’s manufacturing capacity.
The agreement, facilitated by the Ondo State Development and Investment Promotion Agency (ONDIPA), was signed at the Office of the Secretary to the State Government in Alagbaka, Akure, under the administration of Governor Lucky Orimisan Aiyedatiwa.
With a projected annual gross economic value of more than ₦300 billion for Ondo State, the investment could open up fresh revenue streams, stimulate economic activities in the coastal communities and create opportunities for businesses involved in mining, transportation, construction, energy and export logistics.
The project also seeks to address a longstanding challenge in Nigeria’s mineral sector: the export of raw materials without sufficient domestic processing to capture the greater economic value available from finished and intermediate products.
Under the arrangement, the plant will process locally sourced ilmenite ore into titanium dioxide pigment and titanium sponge, materials used in industrial manufacturing and other specialised applications.
The project could also provide a platform for the future production of niobium-titanium alloys and selected rare earth products.
The state government said the partnership reflected its industrialisation agenda, which prioritises local value addition, employment generation, technology transfer and sustainable revenue from the state’s natural resources.
Speaking on behalf of the government, the Secretary to the State Government, Dr Taiwo Fasoranti, said Aiyedatiwa’s administration was determined to ensure that the state’s mineral wealth translated into tangible economic benefits for residents rather than being exported largely in its raw form.
“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,” Fasoranti said.
The government has allocated 100.079 hectares of land at Alape, along the Igbokoda–Ugbonla Road in Ilaje, for the project. The location was selected for its access to lagoon water, proximity to gas infrastructure for power generation and potential links to deep-sea port facilities and export routes along the Lagos–Calabar Coastal Corridor.
Beyond land allocation, the state government is expected to facilitate access to raw materials, support the acquisition of operating licences and regulatory approvals, provide critical infrastructure within the project area and coordinate engagement with host communities.
The $362 million investment will be implemented in two phases through a joint-venture special purpose vehicle, PyVee Nigeria Titanium Limited. The first phase involves a $12 million commercial pilot plant, while the second phase will establish a full-scale titanium processing complex.
The pilot plant is expected to commence commercial operations approximately 21 months after the agreement, according to the project details.
The modular processing equipment will be fabricated by a United States-based partner before being shipped to Nigeria for installation and commissioning.
The two phases are projected to create more than 150 direct jobs during the pilot stage and over 800 direct jobs when the full-scale complex becomes operational.
Thousands of additional employment opportunities are also anticipated across the wider value chain, including mining, logistics, equipment supply, maintenance and related services.
For the state, the economic significance of the investment extends beyond employment. The proposed equity for land arrangement will give Ondo a stake in the project company, allowing it to participate in the venture’s potential returns rather than receive only a one-off payment for the land.
The Chief Executive Officer of ONDIPA, Barrister Emmanuel Omomowo, said the agency worked to structure the transaction and assess the company’s technical and financial capacity before the agreement was concluded.
He explained that the equity arrangement was designed to align the state’s interests with the long-term performance of the investment.
“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,” Omomowo said.
He added that the transaction could provide a framework for attracting further private-sector investment into industrial projects across the state.
The founder and Chief Executive Officer of PyVee Limited, Dr Peter Oladipupo, said the agreement marked a step towards moving the titanium-processing project from development to implementation.
Oladipupo, a chemical engineering PhD holder from Purdue University, said the company intended to build processing capacity that would enable Africa to derive greater value from its mineral resources while connecting local production to international markets.
