Ellah Lakes Plc (ELP) has said that it plans to invest $400 million in capital over the next two years to deliver on its crop processing zone strategy within a Special Economic Zone (SEZ).
Chuka Mordi, chief executive officer of Ellah Lakes Plc, stated this at the presentation of the company’s Facts Behind the Right Issue in Lagos.
The company also stated its intention to raise N2.9 billion within 28 days on the Nigerian Stock Exchange floor.
“On behalf of the management of the Nigerian Exchange Group, we commend Ellah Lakes for coming to utilise this platform in a way that suggests that we are to provide more innovation to investors across different segments of the market,” said Jude Chiemeka, executive director, capital market, NGX Limited.
Mordi noted that ELP is in the process of applying for Special Economic Zone (SEZ) status to cover each of its core operating locations.
According to Mordi, the key benefits and incentives for operating within a Special Economic Zone include a “Complete tax holiday from all forms of taxes, rates, and levies, duty-free import of raw materials, capital goods and other inputs for production; Immigration waiver on expatriate quota, businesses are allowed full repatriation of capital, profit, and dividends, among others.”
He noted that in addition to existing infrastructure, ELP intends to build storage silos capable of storing up to 10,000 MT of soybean and maize.
“The storage infrastructure will serve both ELP’s needs as well as those of 3rd party growers within the region and will complement the Federal Government’s strategic grain reserves,” Mordi said.
ELP has active plans to reduce the carbon footprint of its operations. The Company intends to power the SCPZ using renewable energy (water and solar).
The Company has also commenced discussions with several stakeholders on carbon sequestration projects, with an aim to ensure our overall operations are carbon neutral,” he said.
Mordi noted that Nigeria imports an estimated 340 million liters of ethanol annually, valued at $315 million adding that only 6% of the product is produced locally.
“The coming upstream of the Dangote Refinery would also result in an increased demand for ethanol in order to ensure the refinery’s output meets EU requirements for ethanol content in the refined product (10-15%).
ELP has scope to expand into other key cassava by-products that have both high growth potential and relatively easy substitutes/complements to existing food production processes and industrial applications,” he said.
Ellah Lakes was founded in 1980. It is the only fully indigenously owned agribusiness company listed on the Nigerian Exchange Group with a market capitalisation of N7.2 billion and 2,873 shareholders.