Yobe State Governor Mai Mala Buni has commenced the inspection of dormant companies in the state as part of his efforts to resuscitate all ailing companies in the state.
According to Gov. Buni, his administration’s commitment
to revive the industries is a step towards generating employing and fighting
against unemployment among the teaming youth in the state.
Gov. Buni who has so far undertaken the
inspection of Yobe Polythene and Woven
Sacks company, Yobe Flour and Feed Mills and Sahel Aluminium company said the industries
will soon start production to activate economic activities in the state.
“As I have
said in my inaugural speech, it is part of the economic policy of this administration
to ensure that we revive all our industries, particularly the Gujba Fertilizer
Blending Plant, the Yobe Polythene and Woven Sacks factory and the Flour and
Feed Mills in Potiskum.
“As for the Yobe Polythene and Woven Sacks
factory, because of the environmental effects of polyethene, we will be more
interested in the woven sacks aspect since our state is an agrarian state and
our farmers use a lot of woven sacks”, he said.
Governor Buni added that he will focus on accelerated economic growth of the state
by generating jobs and employment opportunities by capacitating the companies
into full production.
Gov. Buni who inspected the companies in company of his deputy, Hon. Idi Barde Gubana, the State
Assembly Speaker Ahmad Lawan Mirwa and other senior government officials, was
taken round the Polythene and Woven Sacks Company by the Permanent Secretary
Ministry of Commerce Goni Ali Gujba and the General Manager, Engr. Shuaibu
Adamu Gadaka.
The governor was told that the Polythene and
Woven Sacks Company stopped production in 2011 due to high operating costs,
poor management and other bottlenecks.
He ordered the ministry officials to undertake an comprehensive overhaul
of the current state of the company and submit
a report to him with recommendations on
how the government could revive the company and overhaul or replenish its
equipment.
The Yobe Flour and Feed Mills, on its part,
stopped production in 2012, the governor was told.
Acting Managing Director of the Yobe Investment
Company, which now manages the Flour Mills, Hamza Mohammed said since 2012,
“there was no major attempt to reactivate the company because the technical
partners had left and there was actually no management in place”.
Hamza Mohammed also said that a pile of debt
incurred by the past management of the company also affected its capacity to
return to production.
He said, “The former management of Yobe Flour
Mills got the company indebted to Unity Bank, and the loan was transferred to
Asset Management Company of Nigeria (AMCON) and there was a very serious threat
of taking over the company by AMCON in 2016 but with the concerted effort of
the interim management committee (under Yobe Investment Company), we were able
to negotiate full interest waiver with AMCON and the loan was settled with
joint fund raised by the Yobe state government and the 17 local governments to
the tune of N75 million. So, all encumbrances have now been resolved. And
therefore, there is not much hindrance that would stop the company from being
reactivated again”, he said.
The Investment company MD said that based on
assessment, a cash injection of N35 million will be enough to resuscitate the
Flour Mills, a company, he says, that has the capacity to be used for the
production of animal feeds and as a rice mill as well.
Governor Buni, who also visited the Sahel
Aluminium company also based in Potiskum, directed that a report be submitted
to his office within two weeks on the requirements to put back the Flour Mills
to production and what would be needed to upgrade the Sahel Aluminium and make
it more profitable.
ImpactOnlineNigeria reports that many of such companies
like the Dofarga Water Company, Nguru Oil Mill Company to mention a few are lying fallow in the
state.
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