The Asset Management Corporation of Nigeria (AMCON) has handed over the moribund Star Paper Mill Limited to the Abia State government, marking a significant step towards industrial revival in the state under Governor Alex Otti.
This was contained in a statement issued on Saturday by Gov. Otti’s Chief Press Secretary, Ukoha Ukoha and made available to journalists in Umuahia.
The Star Paper Mills Limited, established in 1976 by the late entrepreneur, Chief Nnanna Kalu, provided thousands of jobs while operational.
Speaking during the handover ceremony held at the Government House, Umuahia, Gov. Otti said that the recovery of the asset is In line with his campaign manifesto to revive moribund Industries, including the Star Paper Mill, Aba Textile Mills, Ogwe Golden Chicken, and International Equitable, among others.
The governor promised that the industry when fully operational would create between 3,000 and 5,000 jobs in addition to attracting private sector participation.
He said that the Star Paper Mill 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 paper mill.
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, adding that prospective investors are already on ground to partner in operationalizing and managing the companies.
Gov. Otti explained that his government’s role is to de-risk the investment and attract capable private sector operators and challenged the UCCIMA and ACCIMA to rise up to the challenge, adding that his intention is not that the state 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.
“Like 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 are 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” Gov. 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.
Also speaking, the Commissioner for Industry and SMEs, Mike Akpara 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 state government has fully concluded the acquisition of Star Paper Mills Limited in Aba with a ₦2.5 billion payment, and has equally made an initial ₦500 million deposit for Afro Beverages Limited, Aba.
He added that the state is already deepening engagements toward reactivating other moribund assets, maintained that, reviving industries would boost the Gross Domestic Product (GDP) of the state and create jobs.
Executive Director of AMCON, Aminu Dan’amu said that the factory, which had fallen into disuse due to financial distress, represents more than an asset, describing it as “an icon woven into the history of Abia State and Nigeria”.
He recalled using products from the factory, including exercise books, during his youth and 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.
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.
He said that the handover underscores the importance of federal-state collaboration in preserving strategic national assets and boosting economic development, commending Gov. Otti for his commitment to acquiring the factory.
The hand over was witnessed by the President, Aba Chamber of Commerce, Industry, Mines and Agriculture (ACCIMA), Jude Nwosu, and the President, Umuahia Chamber of Commerce, Industry, Mines and Agriculture (UCCIMA), Catherine Igbokwe, among other senior government appointees.
