The governments of Lagos and Kebbi
States have signed a joint venture agreement for the establishment of a
modern and commercially viable rice mill complex aimed at increasing
Nigeria’s capacity to grow and produce rice for local consumption and
enhancing the country’s food sufficiency.
The complex, which would be located in
Lagos, has the capacity to process and mill 20 tonnes of rice per hour,
just as the finished product would be known as “Laskeb rice”.
According to Lagos State sources, the
two state governments had over the past few months worked closely with
Access Bank and a Mexican farming conglomerate, San Carlos, a company
that has the requisite experience and modern technology for processing
and milling of rice in commercial quantity.
“It is expected that this joint venture
project would serve as a booster to the federal government’s reforms
agenda especially in agriculture and save Nigeria as much as $3 billion
annually by way of import substitution,” said a senior source with the
state government.
It stated that a memorandum of
understanding (MoU) in relation to the establishment and operation of
the rice mill complex was recently signed between the three principal
stakeholders, Lagos State Government, Kebbi State Government and San
Carlos Nigeria Limited.
Access Bank as the lead banker and
adviser in the project, would also have responsibility for bringing
other credible investors into the project.
The bank had served as the lead
financial institution for major projects in the country including the
Eko Atlantic City, and lately, the proposed Fourth Mainland Bridge.
An informed source also told THISDAY
that there are plans for a Chinese firm to be brought into the
partnership, adding that Lagos and Kebbi States might soon extend their
collaboration in agriculture to animal husbandry.
According to the source, the milling
project, at least as far as rice is concerned, lays a vital plank for
Lagos and Kebbi States’ ambitions to become food sufficient as well as
diversify their economic base.
For the stakeholders, gains of the
investment include a guaranteed return for the JV, assurance of private
sector confidence in the business climate, and job and wealth creation
for Nigerian citizens.
Industry watchers believe the project
would equally help to boost the diversification of the Nigerian economy
especially now that the federal government is working on strategies to
develop other sectors as part of its strategy to reduce the country’s
dependence on oil.
They commended the governments of Lagos
and Kebbi for bringing up initiatives that would help to uplift the
living standards of the people.
The project is in consonance with the
objectives of the private public partnership (PPP) programme of the
Lagos State Government through which it reaches out for strategic
support from the private sector to develop the economy of the state.
0 comments:
Post a Comment