Ibidapo Lawal unveils $150 million-a-year aluminum plant in Nigeria

Key Points

• Neveah Limited’s aluminum and copper recycling plant in Mowe, Ogun State, will generate $150 million annually, boosting Nigeria’s industrial sector.
• The plant will create over 500 jobs and export recycled ADC 12 aluminum to car manufacturers in Japan and Indonesia.
• Ogun’s proximity to major ports, skilled labor, and gas supply made it the ideal location for Neveah’s plant, ensuring cost-effective operations.

Neveah Limited, a commodities trading company founded by Nigerian businessman Ibidapo Lawal, has launched an aluminum and copper recycling plant in Mowe, located in Ogun State, South West Nigeria. The plant, which is expected to generate $150 million in annual revenue once fully operational, will play a significant role in boosting Nigeria’s industrial sector.

The plant is also set to create over 500 jobs, further solidifying Ogun State’s position as a key industrial hub in Nigeria. It will focus on recycling aluminum scraps from sources like car engines and cans, turning them into high-quality ADC 12, which will be exported to car manufacturing companies in Asia, including Japan and Indonesia.

Ibidapo Lawal, Neveah’s Managing Director and CEO, shared these details after a meeting with Ogun State Governor Dapo Abiodun. He explained that the recycling plant, once operational, would generate over $150 million in annual revenue and provide jobs for more than 500 people. He emphasized that the project would also contribute to Nigeria’s non-oil export sector, accounting for approximately 2.53 percent of the country’s total non-oil exports.

Why Ogun became the ideal choice

Lawal explained that while the plant was initially planned for northern Nigeria, Ogun State’s proximity to major ports like Tincan, Apapa, and Lekki made it the ideal location. He also noted that the region’s rising property values and investment potential were key factors in the decision. “Ogun is very close to Lagos, and the return on investment here is significant,” Lawal said.

The decision to set up the plant in Ogun was also influenced by the availability of skilled labor, a reliable infrastructure network, and abundant gas supply. “In other states, we might have to rely on diesel to power our plant, but Ogun offers a more cost-effective solution with its gas availability,” he added.

During his meeting with Governor Abiodun, Lawal updated him on the progress of the project and sought his support for a successful launch. “The governor was very supportive and enthusiastic. It’s refreshing to see a leader who is genuinely committed to promoting investment and working for the people’s benefit,” he remarked.

Neveah’s expansion and financial success

Neveah Limited, founded by Lawal in 2014, has grown into a prominent commodities trading company, specializing in base metals, minor metals, and agro commodities. The company exports to markets across Europe, North America, and Asia, with key destinations including Switzerland, Germany, China, the United States, and the United Arab Emirates, among others.

Under Lawal, Neveah has raised approximately N24 billion ($15.2 million) in the financial markets over the past five years, repaying over N14 billion ($8.85 million). The company’s export business has grown exponentially, increasing by over 1,000 percent in six years. In that time, Neveah has achieved a compound annual growth rate (CAGR) of 68 percent in revenue and 176 percent in profitability, demonstrating the company’s impressive growth trajectory.