Hope Moses-Ashike
The Nigeria Export -Import (NEXIM) Bank is making plans to resuscitate the Multi-Trex Cocoa processing factory, which has remained closed for 13 years.
Abubakar Abba Bello, managing director, disclosed this at the weekend during a joint facility tour of Multi-Trex Integrated Foods Limited, Ogun State.
“It is our determination to bring back Multi-Trex to life. This will create jobs and encourage export,” he said, just as he challenged the managing director of the company to show more commitment towards the revival of the Cocoa company”, he said.
Multi-Trex factory has remained closed since Friday June 26, 2015, on the basis of an Interim Order of the Federal High Court, granted by Justice F. O. G. Ogunbanjo on Friday June 12, 2015 and subsisting till date, for possession of the manufacturing factory of the company.
AMCON laid claims to a debt of N13.3 billion being the contested sum of N8.5 billion Eligible Bank Asset (EBA), bought from Skye Bank plus AMCON’s own interest calculated for the period that the company has been prohibited by the Central Bank (CBN) from accessing Working Capital for its operations. Multi-Trex faults the procedure. It claimed its acquisition by AMCON was not only unlawful, as it was performing and meeting all its financial obligations with Skye Bank before the N8.5 EBA was acquired. Multi-Trex is insisting on the sum of N6 billion agreed with AMCON as full and final settlement.
During the tour carried out in company of the House of Representatives Committee on Banking and Currency, Bello said NEXIM Bank is committed to revitalising of Multi-Trex Cocoa processing plant.
He called on entrepreneurs in the cocoa processing value chain to avail themselves of the N500 billion single digit interest rate funding incentives by the bank.
Bello assured of NEXIM’s readiness to effect the processing of Loan application by Multi-Trex, but alluded to the fact that the terms of settlement between Multi-Trex and the Assets Management Corporation of Nigeria (AMCON) have to be reached in specific terms.
He said what the company needs is only the working capital, adding that as an export credit institution charged with the mandate to promote export diversification of the non-oil sector, it has in the past supported the cocoa value chain by funding major cocoa processing plants.
John Onyereri, Chairman, House Committee on Banking and Currency, said the private sector needs to be encouraged to advance the growth of the economy by reducing the interest rate on loans.
He promised to push until the Multi-Trex factory is resuscitated, “We are pushing as parliament and we will keep pushing. At a point, they will do that because we have the will, but nothing is achievable until there is an executive approval.”
Dimeji Owofemi, Vice Chairman/CEO, Multi-Trex, explained that cocoa is the largest non-oil commodity in the country and the best way to benefit from this natural resource is to collaborate with the Central Bank Of Nigeria, NEXIM Bank and the Bank of Industry in order to fast tract the revival of the Cocoa processing plant.
Oladimeji said that the money expected to keep the company moving is just a working capital of N4 to N5 billion. “It sounds big but looking at the cost of a ton of Cocoa, the money might not be big as such”, he said.
A ton of cocoa, he said, was one N1million in the last season and assured that the company will be able to process 65,000 tonnes at full capacity.
The role he expects the committee to play is to bring the three legs of Bank of Industry, NEXIM and the Bank of Agriculture together, so that the risk will be shared because the higher the risk, the higher the return.
Oladimeji commended NEXIM Bank and CBN’s effort in setting up N500 billion funds to help exporters carry out their obligations without financial stress, thereby adding value to the Gross Domestic Product (GDP) base of the country.
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