Enugu State Govt And Jelfah Group Sign ₦40 Billion Deal
A 40billion Naira deal has been entered into by the Enugu State Government and Jelfah Nigeria Ltd for the revitalisation of the long-moribund and state-owned Sunrise Flour Mills, Enugu.
Didactic Information Hut reports that the deal which was signed at the Government House in Enugu on Tuesday saw Jelfah acquire 60 per cent equity stake in Sunrise Flour Mills and is expected to invest N24bn in the iconic mills, which went moribund since 1985, just two years after it was commissioned in 1983, while the state government keeps 40 per cent based on the existing assets of the company.
Speaking at the brief signing ceremony and public announcement of the transaction, Gov Peter Mbah said this milestone, coming on the heels of the N100bn deal to resuscitate the hitherto dying Enugu United Palm Products Limited, UPPL, were clear demonstrations of his administration’s determination to grow the state’s economy from $4.4bn to $30bn through private sector investment.
“Just a few months ago, we secured an investment size of N100bn with a company known as Pragmatic Palms Limited, and today we have just witnessed Enugu State, again, securing another investment size of N40bn.
“This investment will see Jelfah Group investing N24bn into the existing Enugu Sunrise Flour Mills. N22bn will be directed into revmaping and resuscitation of the Sunrise Flower Mill, and N2bn is going to come to the State by way of cash.
“The Special Purpose Vehicle (SPV) 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.
“This is a testament that when we say Enugu State is open for business, we are truly committed to it. We understand how to make a win-win deal, both for the investors and for the people of Enugu State,” Mbah stated.
