Abia State Governor, Dr Alex Otti has approved, in principle, the takeover of the state-owned Afro Beverages facility by Nepal Group to drive its rehabilitation and enhance economic productivity.
Governor Otti made this known, on Tuesday , when he received the Group Managing Director of Nepal Group, Mrs Ngozi Ekeoma, and her team at his office in Nvosi Isialangwa South LGA, where they formally presented a proposal to take over and revamp the industry.
The Governor who welcomed their proposal, affirmed that his administration’s priority is to create an enabling environment for private sector led growth rather than operate business enterprises directly.
“When we made the acquisition (of Afro Beverages) the whole idea was not to run it.
“We don’t even want to run business. We want to create an environment for businesses to run well, thrive, make money, create jobs, improve GDP, reduce poverty”, he said.
Governor Otti while declaring support for the proposal in-principle for Nepal Group to take over Afro Beverages, said that the State would retain only a minority stake of no more than 20 per cent.
“I’m very happy to offer it (Afro beverages) to you. What I have said was that we just want a small percentage, no more than 20 percent, you offload the remaining 80%.
“I think it’s also important that you are in partnership. My colleagues who are directly involved have also looked at your initial teaser”, the Governor added.
He further disclosed that despite interest from foreign investors, the State had prioritised partnership with Nepal Group.
Earlier, the Group Managing Director of Nepal Group, Mrs Ngozi Ekeoma, while reiterating her company’s request to acquire the State owned Afro Beverages Facility, explained that the company had completed due diligence.
Mrs Ekeoma
Explaining the rationale behind the move, Mrs Ekeoma said Nepal Group was diversifying into manufacturing as a strategy to drive job creation and industrial growth.
“I’m here again to ask for AFRO BEVERAGES because I’ve been there, I’ve done my numbers, I’ve also done both the due diligence and the numbers for it and today we are here again to make a proposal and hopefully the state will accept for us to take over that facility and revamp it.
“I believe that I’ve done a lot of this sort of thing over and over again and I trust that you will trust us to handle that factory.
“We think that manufacturing is the way to go because that’s what creates jobs and for us, that is what we need to do, bring back all the industries back to our State”, she stated.
She also highlighted improvements in the State’s business environment, particularly in power and infrastructure, stressing that high diesel costs had previously hindered industrial operations.
Mrs Ekeoma thanked the State Government for improving road infrastructure to support her company’s detergent plant in Ukwa West and highlighted challenges with access roads to her agricultural project in Igbere and appealed for government intervention.
“I mentioned to you that I already have a project… the four tonner per hour detergent plant that we’re building in Ukwa West and you promise that you’re going to fix the roads. So I want to use this opportunity to say thank you,” she said.
Contributing, the Commissioner for Industry and SMEs, Mazi Mike Akpara, also supported the proposal, noting that Afro Beverages is a facility capable of quick turnaround.
In a vote of thanks, the Regional Director for Southern Africa Region of Nepal Group, Mr Nnamdi Obiagwu, assured that the company would deploy its resources and expertise to ensure the success of the project.
“All the resources and capacity that Nepal has, both human and capital, will be put into making this project a success for all of us”, he said.
