Finalisation of a lending deal valued at N16.56billion at dual tranche for export development facility between African Export-Import Bank (Afreximbank) and Ganic Foods Limited has been announced.
The deal, according to a statement which was announced at at the 2022 AfriCaribbean Trade & Investment Forum recently has been designed to support Ganic in its construction of a Palm Kernel Expellers plant, a Soyabean Solvent Extraction Plant, as well as a Vegetable Oils Refinery – all located within an area in excess of 50,000 square meters at Odofin-Oke Village, along Shagamu-Abeokuta Expressway, Ogun State, Nigeria. The total Project cost to the statement is estimated at N27 billion.
In financing this project, Afreximbank materially supports the development of a local substitute for imported edible oil – by locally producing high quality soya and vegetable oils – and thereby the reduction of Nigeria’s dependence on imported (and, in some cases, smuggled) edible oils. This reduced exposure to imports will also go some way to insulate Nigeria from the pricing volatility of edible oils on international markets.
This development is also expected to bridge overall production shortfalls and address the market gap driven by demand for high value edible oil. Immediate benefits of the project include the creation of over 200 jobs (with an estimated 1,000+ indirect labours) and support for 2,000 local farmers in Nigeria– once operational.
In the statement, Deji Akinyanju, the Founder/CEO of Ganic expressed the company’s appreciation to Afreximbank for its support and cooperation with Ganic all through the process, its continued support for business growth in Nigeria and its commitment to the development of “On-the-Spot” processing of agricultural commodities in Africa for the local and export markets.