Swedish company OSE System AB, the owner of the OurEcolution brand, has announced a Foreign Direct Investment (FDI) of $275 million in sustainable building materials production.
The investment will support the construction of 10 plants across various locations in Nigeria and enhance the country’s waste-to-wealth housing initiatives.
This development was disclosed by Mr. Rotimi George, Board Chairman of Ekopanely Nigeria Limited, during the unveiling of a new building material that uses rice straw as a key component.
The pilot building is situated at GORA Farms in Karu Local Government Area, Nasarawa State.
Subsequent projects will be executed in collaboration with rice-producing state governments, with support from the World Bank.
The National Agency for Science and Engineering Infrastructure (NASENI) has acquired the model plant franchise on behalf of the Federal Government, further cementing Nigeria’s public-private partnership (PPP) efforts in delivering affordable housing via sustainable methods.
Ekopanely Nigeria Limited, which has been engaged in research and development since its incorporation in 2011, is spearheading this initiative.
The company has adopted the Build and Operate Franchise (BOF) system to establish manufacturing plants across selected locations in Nigeria.
Four production lines will be installed at each plant during the initial phase, with plans to scale up to 20 production lines over the implementation timeframe.
The BOF model ensures franchisees are shielded from operational and managerial responsibilities.
Franchisees are only required to provide suitable plant locations and contribute counterpart investment capital, receiving a share of the profit after tax and other economic benefits.
The innovative building materials utilise rice straw, converting agricultural waste into valuable construction inputs.
The initiative aligns with Nigeria’s quest for sustainable development and economic diversification.
Geo-cost farmers and contributors to the National Housing Fund (NHF), primarily federal, state, and local government employees, will benefit from mortgage loans designed to make housing affordable.
Mr. George noted the importance of collaboration between state governments and the organised private sector, the largest employers of labor and contributors to the NHF scheme.
This synergy, he said, will expedite the delivery of affordable housing as envisioned under the National Affordable Housing Development Act.
“This project is a win-win opportunity for state governments,” George stated.
“Instead of direct cash benefits, state governments participating as franchisees will receive building materials to support their social housing initiatives, ensuring the benefits of this investment remain within their jurisdictions.”
Ekopanely has partnered with NASENI and rice-producing state governments to bring this vision to life.
The World Bank’s involvement further strengthens the project’s sustainability and scalability. The initial capital investment at each plant will not only create jobs but also drive significant revenue for participating states and franchisees through increased production output.
With Nigeria’s housing deficit requiring innovative solutions, the OSE System AB initiative represents a vital step toward leveraging technology and sustainable practices to meet the growing demand for affordable homes.
