The Ondo State Government has signed a $362 million public-private partnership agreement with PyVee Limited to establish a titanium processing plant aimed at increasing local value addition to Nigeria’s mineral resources.

The proposed facility is expected to become West Africa’s first fully integrated titanium value-chain processing plant and Africa’s second, positioning the state to participate in international supply chains serving the aerospace and defence industries.

The agreement was signed at the Office of the Secretary to the State Government in Akure under the administration of Governor Lucky Aiyedatiwa. It was facilitated by the Ondo State Development and Investment Promotion Agency (ONDIPA).

Under the arrangement, the state government has allocated 100.079 hectares of land at Alape, along the Igbokoda–Ugbonla Road in Ilaje Local Government Area, for the project.

The location was selected for its access to lagoon transportation, gas infrastructure for power generation and proximity to proposed deep-sea port and export logistics facilities along the Lagos–Calabar Coastal Corridor.

The state is contributing the land as equity in the joint-venture company, PyVee Nigeria Titanium Limited, rather than receiving a one-off payment.

The government will also facilitate access to raw materials, support the acquisition of licences and regulatory approvals, provide critical infrastructure within the project area and coordinate engagement with host communities.

The project will be implemented in two phases. The first involves a commercial pilot plant estimated to cost $12 million, while the second will establish a full-scale processing complex requiring more than $350 million in additional investment.

The two phases are projected to generate more than ₦300 billion in annual gross economic value for Ondo State and over ₦480 billion nationally. The project is expected to create more than 150 direct jobs during the pilot phase and over 800 direct jobs when the full-scale facility becomes operational, alongside additional indirect employment opportunities.

The plant will process ilmenite ore locally instead of exporting it in raw form. Its proposed products include titanium dioxide pigment and titanium sponge, with provision for future production of niobium-titanium alloys and selected rare-earth products.

The modular plant will be fabricated by a United States-based partner and transported to Nigeria for installation and commissioning.

Secretary to the State Government, Dr Taiwo Fasoranti, said the agreement reflected the administration’s industrialisation agenda, which seeks to convert the state’s mineral resources into local jobs, technology transfer and sustained revenue.

He reaffirmed the government’s commitment to supporting the project from land allocation through commissioning.

ONDIPA Chief Executive Officer Emmanuel Omomowo said the agency had helped structure the transaction and assess PyVee’s technical and financial capacity. He described the equity-for-land arrangement as a model for future public-private industrial partnerships.

PyVee founder and Chief Executive Officer, Dr Peter Oladipupo, said the agreement represented an important step towards developing processing capabilities that would increase the value of African mineral resources and connect regional production to global markets.

The project is expected to support Nigeria’s efforts to expand domestic mineral processing, reduce dependence on imported titanium products and develop industrial capacity beyond the export of raw materials.