Nestle Nigeria, Plc, FrieslandCampina WAMCO, as well as L&Z companies have announced plans to set up processing plants in the Federal Capital Territory (FCT) with huge prospects for jobs and additional development.
The plans was disclosed on Monday in Abuja as governor Godwin Emefiele of the Central Bank of Nigeria (CBN) led a delegation of the companies’ representatives on a courtesy call on the FCT minister, Muhammad Musa Bello.
The meeting which held at the instance of the CBN was basically to engage the FCT on a collaboration that would further push apex bank’s job creation efforts, and particularly discuss how to fastrack the allocation of land to these companies which have indicated interest for expansion.
Emefiele said the push was borne out of CBN’s desire to make states self-sustaining and economically viable by supporting projects and programmes that will help realize this, including the Federal Capital Territory.
“The second reason l am here honorable minister is seek your intervention to fasttrack the allocation of land with titles to three companies that have requested for land to established dairy processing plants in the FCT,” Emefiele said.
“These companies are WAMCO FRIESLAND CAMPINO, NESTLE and L and Z”.
He said the various collaborative efforts by the CBN and the private sector had yielded significant results, leading to deliberate measures by the private firms to embrace backward integration strategies, job creation and industrialization locally.
One of these measures, he noted is the partnership with milk importing companies to develop the local dairy sector and harness its potential in the interest of the nation.
“This strategic partnership commenced with Niger State Government allocating 31,000 hectares of land to milk companies within the Bobi Grazin Reserve to develop the local dairy breeds for enhanced milk collection and also integrate the local pastoralist and ultimately curb the farmers-herders crisis.
“In furtherance to this initiative is the additional resolve by some milk producing companies to establish milk processing factories in the FCT as it offers a unique environment for industrialization and also easy access to raw materials from the entire North-Central zone of the country.”
Emefiele was confident that establishing these companies in the FCT will drive industrialization, stimulate local production of milk and hence develop the local dairy sector. It wall also boost employment, facilitate linkages along the dairy sector in Nigeria and ultimately conserve enormous foreign exchange that would be required for importation.
“Nestle Plc and Friesland Campina Plc have signified interest to establish Milk processing factories in the FCT and the CBN is ready to work with them to actualize the deliverable of these projects.
“We therefore request you to please assist in the allocation of land in FCT expeditiously,” the governor urged.
In response, the FCT minister said the idea of establishing processing plants in Abuja is a boost to his administration’s plan of creating jobs in the capital city.
He acknowledged Emefiele’s effort and passion in revamping the economy, noting the CBN’s anchor borrower programme has been a success and rice revolution commendable.
Bello cajoled other government authorities who are supposed to be responsible for these interventions and urged Emefiele to develop a price stabilization mechanism that would encourage farmers and checkmate shortfall.
“I need you to clearly look at a mechanism where farmers can be assured of a regular price irrespective of what the market situation is, that way you can sustain production,” he suggested.
Assuring necessary support, Bello said the companies are legacy companies in Nigeria and assured them of partnership.
But he explained that the FCT master plan envisages four grazing areas meant to cater for herders and also all the economic value chain to go with it.
He said this has constricted available land for industries “which means massive hectares of land will be a challenge.”
“Be rest assured that the land will be made available for processing where we have competitive advantage,” Bello however assured.
He also urged the CBN to provide funding to fastrack needed infrastructure.
In the response, the CEOs expressed excitement over the development and expected gains.
Mauicio Alarcon, CEO, Nestle Nigeria said the partnership is particularly strategic as it would help them expand, buy more from the very many farmers who they have been working with over the years, and boost jobs.
Onyinye Nwachukwu, Abuja
