…As Jelfah invests N24bn, Enugu divests 60 percent equity stake
The Enugu State Government and Jelfah Nigeria Ltd have finalized a N40bn agreement aimed at revitalizing the long-dormant Sunrise Flour Mills, a state-owned entity.
The deal, signed at the Government House in Enugu on Tuesday, grants Jelfah a 60 percent equity stake in Sunrise Flour Mills, with an anticipated investment of N24bn in the iconic facility, which has been inactive since 1985—just two years after its commissioning in 1983. The state government will retain 40 percent of the company’s equity based on existing assets.
During the brief signing ceremony and public announcement, Mbah highlighted this milestone as a part of his administration’s commitment to revitalizing the economy of Enugu State, targeting an increase from $4.4bn to $30bn through private sector investment. This follows a N100bn deal to revive the struggling Enugu United Palm Products Limited (UPPL).
“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.
He assured Jelfah group of continued support, enjoining other prospective investors to come over to invest in the state.
“We hope that this signals to other investors, who may still be on the fence that Enugu is actually ready for business. We are committed to not just creating the enabling environment, but also working with investors to help them derisk investments and grow their businesses,” the governor concluded.
Speaking, the Chairman of Jelfah Group, Moses Saromi, said they were attracted by Governor Mbah’s vision, dynamic leadership, and speedily increasing ease of doing business in Enugu State under his leadership, saying that Jelfah was in a hurry to transform Sunrise Mills to 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 Four Mills into a centre of excellence, harnessing our collective expertise to drive growth and value creation.
“So, we firmly believe that this partnership will catalyse positive change, spark job creation, elevate local production capacities, and contribute significantly to the socio-economic advancement of Enugu State,” he said.
“We have worked hard in the last months to get to this point. We have a short term, medium term, and a long term plan for the flour mills. Activities will start in earnest. In another 90 days, you are going to experience a lot of movements and activities with regards to the revitalisation of the flour mills.
“Our activities will include recruitment of people, who will run the plant, indigenes of the state, obviously. And as the governor rightly said, we are creating a model that will provide the inputs for the mills, such as the 10,000 hectares of farmlands to cultivate all the inputs for the mills,” he said.
