
Hope is rising in Enugu State as Governor Peter Mbah embarks on an ambitious plan to revive and rehabilitate dormant state-owned companies. This bold initiative aims to breathe new life into several key enterprises, promising economic growth and job creation.
Governor Mbah, fulfilling his campaign promises, has already set the wheels in motion for the revitalization of several long-neglected companies, including the famed Nigergas, Hotel Presidential, Niger Steel Ltd., Sunrise Flour Mills, and the aluminum smelting company at Ohebe Dim, as well as United Palm Products.
Upon taking office, Governor Mbah committed to transforming these dormant assets into productive ventures. The first significant step has been awarding the contract for the refurbishment of Hotel Presidential, a premier establishment in the state capital.
The administration is also finalizing terms for the revival of the state-owned Nigergas Company Limited. This move follows a proposal from the Enugu State Investment Development Authority, highlighting the urgent need for revitalizing this critical asset.
Commissioner for Information and Communication, Aka Eze Aka, alongside Commissioner for Culture and Tourism, Dame Ugochi Madueke, emphasized that these efforts align with the governor’s vision to convert dormant assets into productive ones.
Dame Madueke expressed her excitement about the Hotel Presidential project. “Revamping the Presidential Hotel will not only put Enugu State on the world map as a premier destination for investment, tourism, and hospitality, but will also create jobs for our youths,” she said. “The hotel has been abandoned for years, and bringing it back to life will generate significant economic value, market opportunities, and employment.”
Hotel Presidential, a legacy project of the late Dr. Michael Okpara, opened in 1963 and once stood as a symbol of prestige until it fell into disrepair. Now, it’s poised for a renaissance under Governor Mbah’s administration.
Regarding the Nigergas Company Limited, Commissioner Aka Eze Aka highlighted the administration’s focus on reviving moribund industries to boost the state’s economy and expand its market reach beyond the eastern region. He explained that the approval to revive Nigergas followed a thorough evaluation of various business proposals, ensuring a viable and profitable business case.
Dr. Sam Ogbu-Nwobodo, Managing Director and CEO of the Enugu State Investment Development Authority, noted the high demand for medical oxygen and industrial gas in Nigeria, underscoring the potential for Nigergas to meet these needs. “Revamping Nigergas is a deliberate step by the Mbah administration to provide essential medical oxygen and industrial gas for the Southeast and beyond. The profitability and investment prospects have been vetted, and we are ready to kick off once the paperwork is complete,” he assured.
In a landmark deal, the government has signed a N100 billion agreement with Pragmatic Palms Limited, a subsidiary of Diamond Stripes Limited, to revitalize the Enugu State United Palm Products Limited (UPPL). This partnership will see Pragmatic Palms transform UPPL, a dormant agricultural initiative of the late Dr. M. I. Okpara, into a thriving enterprise.
During the signing ceremony at Government House Enugu, Governor Mbah emphasized the significance of this investment. “This represents a major leap towards reviving our dormant assets, aligning with our vision and promises to the people of Enugu State. This N100 billion investment is crucial, as we view agriculture as a business beyond food security,” he stated. “We assure you that our administration is business-oriented and committed to making this partnership successful for both the company and the state.”
Enugu State Commissioner for Trade, Investment, and Industry, Adaora Chukwu, hailed the deal as a milestone with far-reaching socio-economic benefits. “Reviving United Palm Products Ltd is a significant achievement. This project will create numerous jobs, boost the oil palm industry, generate forex earnings, and facilitate technology and skills transfer to our people,” she explained.
George Nwangwu, Managing Director/CEO of Pragmatic Palms, emphasized the high demand for palm products and the potential for UPPL to drive Enugu State’s economic transformation. “Agriculture is a business. We plan to bring in equipment to process palm products, creating a multiplier effect on the economy. This will lead to more businesses setting up in the state, thereby generating employment and economic growth,” he said. “For example, restarting the operations at Oji River will require around 500 workers, contributing to direct employment.”
Addressing concerns about the N100 billion deal, Uche Anichukwu, Senior Special Adviser to Governor Mbah on External Relations, clarified that the company would finance 60% of the transaction, while the state government would provide 40% equity through the plantations, ensuring no direct financial burden on the government.
Anichukwu also explained the incorporation of Pragmatic Palms Ltd as a Special Purpose Vehicle (SPV) for the deal, a standard practice in international transactions. He noted that the state’s interests are well protected, benefiting from Governor Mbah’s expertise as an investment finance expert and entrepreneur. “Besides corporate and bank guarantors, performance targets and timelines are set in the agreement. If Pragmatic Palms fails to meet these targets, the state government can revoke the deal and regain total ownership of UPPL,” he assured.
Enugu State stands on the brink of a new era, with Governor Mbah’s visionary leadership steering the revival of its dormant companies. As these projects unfold, they promise to bring economic growth, job creation, and renewed hope to the people of Enugu.
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