•AMCON director, Aminu Mukhtar Dan’amu (L) and Governor Alex Otti of Abia State
After almost three decades of closure, the Asset Management Corporation of Nigeria (AMCON) has officially handed over the moribund Star Paper Mill Aba to the Abia State government as the government vowed that the firm would be made to employ over 1,000 Nigerians.
This administration remarked, is a significant step towards industrial revival in the state under the leadership of Governor Alex Otti, reports Saturday Independent.
The company, established in 1976 by the late Abia-born entrepreneur, Chief Nnanna Kalu, provided thousands of jobs to many Nigerians while operational.
Speaking during the handover ceremony held at the Banquet Hall of the Government House, Umuahia, the Abia State Governor, Dr Alex Otti said that the recovery of the asset is In line with his campaign manifesto to revive some moribund industries in the state, including the Star Paper Mill, Aba Textile Mills, Ogwe Golden Chicken, International Equitable, among others.
The governor, who disclosed that his administration would revive the moribund Star Paper Mill, promised that the industry, when fully operational, would create between three thousand and five thousand jobs in addition to attracting private sector participation.
According to him, the firm had previously been sold under questionable circumstances, with parts of the agreement breached, noting that it took his intervention, with the cooperation of AMCON, to recover the asset in addition to refunding the payment made by the company that bought the company.
The governor also disclosed that payment for Afro Beverages, another industrial facility under AMCON, was still ongoing but would be completed in the coming weeks. He stressed that prospective investors are already on the ground to partner in operationalising and managing the companies.
He explained that his government’s role is to de-risk the investment and attract capable private sector operators.
Otti therefore challenged the Umuahia Chamber of Commerce, Industry, Mines and Agriculture (UCCIMA) and Aba Chamber of Commerce, Industry, Mines and Agriculture (ACCIMA) to rise up to the challenge of making the firm a blue-chip company.
His administration’s intention, he stated, is not that the government would run it but that it would be revived and handed over to capable private investors.
“As part of my manifesto, as I campaigned, one of the things I promised our people was to bring back what they call moribund industries and Star Paper Mill was one of them.
“As I have said in the past, our intention is not to run Star Paper Mill. Our intention is to de-risk it, lead from the front, and then bring the private sector to come and take charge.
“We are not acquiring to keep, we’re acquiring to give you (leadership of ACCIMA/UCCIMA). But, we have taken it. So, we can now call you and say this is the way we want to run it”, Otti stated.
He expressed gratitude to AMCON for its cooperation and assured that the government would ensure that the Star Paper Mill becomes profitable, producing goods, and generating employment.
Earlier, the Commissioner for Industry and SMEs, Mazi Mike Akpara had described the handover as the return of life and hope to industries” and a major step in Abia’s industrial resurgence.
The commissioner disclosed that the Abia State Government has fully concluded the acquisition of Star Paper Mills Ltd in Aba with a ₦2.5 billion payment, and has equally made an initial ₦500 million deposit for Afro Beverages Limited, Aba.
The commissioner, who said that the state is already deepening engagements towards reactivating other moribund assets, maintained that reviving industries would boost the GDP of the State and create jobs.
The Executive Director, Asset Management Corporation of Nigeria (AMCON), Dr Aminu Mukhtar Dan’amu who also spoke at the event, maintained that the factory, which had fallen into disuse due to financial distress, represents more than an asset.
He described the firm as “an icon woven into the history of Abia State and Nigeria”.
Dan’amu recalled how he used the exercise books, toilet rolls and other products of the firm as a student in those days and expressed sadness that the beautiful company was allowed to go moribund due to neglect.
He therefore expressed satisfaction that the facility would now be revitalised under the state leadership.
“Today, we are proud to transfer this preserved industrial giant to a government committed to its revitalisation,” Dan’amu said.
Dr Dan’amu, who described the acquisition as a “milestone for the state’s industrial development”, noted that the revived factory could restore and create between 3,000 and 5,000 direct and indirect jobs.
According to him, the handover underscores the importance of Federal-State collaboration in preserving strategic national assets and boosting economic development, commending Governor Otti for his commitment to acquiring the factory.
The handover ceremony was witnessed by the President, Aba Chamber of Commerce, Industry, Mines and Agriculture (ACCIMA), Mazi Jude Nwosu and his team as well as
members of the Umuahia Chamber of Commerce, Industry, Mines and Agriculture (UCCIMA) led by Dr. (Mrs) Catherine Chika Igbokwe accompanied by other UCCIMA members such as Hon Uche Nwosu and Sir Vincent.
Meanwhile, Governor Otti, has expressed his willingness to partner with the governor of the State of Delaware in the United of America, Dr Bethany Hall-Long in various areas of the economy.
Otti stressed in Umuahia while welcoming a delegation of the Governor of the State of Delaware, United States of America in his office that Abia citizens like other Igbo people do not believe in handouts, but need social infrastructure and enabling environment to ply their trade.
He believed that a collaboration with a state like Delaware in the US would yield positive results.
Abia governor told the visiting Delaware that the reason behind the defraying of arrears of pension and salaries is to inject money into the Abia economy.
His word, “So, when we came in and we said we want to pay several years of accumulated pension arrears, the whole idea was to put money in the hands of people.
“So, I’m pleased to have you here and it’s also an invitation for partnership, like you said.
“We would be very happy to work with your team so that we can collaborate. I have fantastic people in my team”.
Otti disclosed that his administration has invested heavily in education and health, and has implemented free and compulsory basic education, including employment of thousands of teachers with a discriminatory compensation package as well as retrofitting of health care facilities and employment of over 700 medical personnel as part of its strategy to develop the state.
In her speech, the 75th governor of the State of Delaware, Dr. Bethany Hall-Long, stated that she is in Abia to seek collaborations with the state governor, Alex Otti.
Dr. Hall-Long, a former legislator and Professor of Nursing at the University of Delaware, said that there are a lot of areas of possible collaborations between the two states, and assured that she would deploy her years of experience to ensure that the partnership works.
“In my 25 years of experience in the state legislature, lieutenant governor, which is like a deputy governor, and short-term governor of Delaware, I hope that we can leverage on it and build bridges.
“I am so honoured to be with a gentleman who can balance humanity, addressing poverty, security and homelessness while providing jobs, workforce, and use of manufacturing.
“We have a lot we can do together, a lot of connections. There are ideas and opportunities for collaboration with medical supplies. There are a whole lot of things that can be accomplished with the proposed partnership.
“It’s really important that you have the leadership, Sir, that you have accomplished all this. And I know you’ve done it with an incredible team, and you do it with courageous leadership”, the Delaware governor declared.
Earlier, while introducing the governor of the State of Delaware, Senator Uche Ekwunife of Anambra State in Nigeria, disclosed that Governor Hall-Long is in Abia to collaborate with the state government in various areas of the economy.
Ekwunife declared, “She is here to partner with Abia State. To bring some grants that will help the people. Help the education sector. Help the health sector. And help other areas where I don’t know if Governor Otti might want them to partner with the state.
She therefore appreciated Governor Otti for achieving a lot in various sectors, particularly in areas of security and infrastructure, adding that she encouraged Dr Hall-Long to come to Abia for partnership because Abia is working.
“I am truly very proud of you and your performance. When I was coming, I was telling her that Abia State is known as an industrial hub.
“This is one state (Abia State) that if anything happens to the economy, it will affect the whole of Nigeria and Africa in general.
“So, I believe that Abia is blessed at this moment to have you (Gov. Otti), to be at the helm of the affairs of this great State”, Senator Ekwunife stated.
