The Enugu State Government and Jelfah Nigeria Ltd. have signed a joint N40 billion deal for the revitalisation of the moribund state-owned Sunrise Flour Mills, Enugu.
The News Agency of Nigeria (NAN) reports that the deal was signed at the Government House, Enugu, on Tuesday.
Details of the deal showed that Jelfah acquired 60 per cent equity in the mills and is expected to invest N24 billion into the firm, which went moribund in 1985, barely two years after it was inaugurated in 1983.
The State Government, on the other hand, will hold 40 per cent equity in the firm, based on the existing company’s assets.
Speaking at the ceremony and public presentation of the transaction, Gov. Peter Mbah described the deal as a milestone, especially coming after the State Government recently signed a N100 billion deal to resuscitate the dying Enugu United Palm Products Ltd.
He described the two deals as a clear demonstration of his administration’s determination to grow the state’s economy from 4.4 billion dollars to 30 billion dollars through private sector investments.
“Just a few months ago, we secured an investment size of N100 billion with Pragmatic Palms Limited.
“Today, we have just witnessed the state again securing another investment size of N40 billion.
“This investment will see Jelfah Group investing N24 billion into the existing Enugu Sunrise Flour Mills, out of which N22 billion will be directed into revamping and resuscitating the mill, and N2 billion goes to the state as cash.
“The Special Purpose Vehicle is also going to own 10,000 hectares of farmland, where we are going to cultivate the inputs for the flour mills, such as cassava and grain,” the governor said.
He assured Jelfah Group of government’s continued support, while urging other prospective investors to come over and invest in the state.
Mbah gave assurance that the state was committed to not just creating the enabling environment but also working with investors to help them de-risk investments and grow their businesses.
Also speaking, the Chairman of Jelfah Group, Moses Saromi, said they were attracted by Mbah’s vision, dynamic leadership, and speedily increasing ease of doing business in the state under his leadership.
Saromi said the company was in a hurry to transform Sunrise Mills into a centre of excellence.
“Your policies have unlocked new opportunities for private sector participation, and Jelfah is proud to be part of this progressive movement.
“This acquisition of 60 per cent equity not only aligns with Jelfah’s long-term vision but also furthers the governor’s ambition of empowering the people, revitalising moribund assets, and ensuring sustainable development.
“And together with our consortium partners, our goal is to transform Sunrise Flour Mills into a centre of excellence, harnessing our collective expertise to drive growth and value creation.
“It is our firm belief that this partnership will catalyse positive change, create jobs, elevate local production capacities, and contribute significantly to the socio-economic advancement of Enugu State.
“Our activities will include the recruitment of people, who will run the plant, and we are creating a model that will provide the inputs for the mills, such as the 10,000 hectres of farmlands to cultivate all inputs for the mills,” Saromi said. (NAN)
