Enugu to revitalise moribund flour mills 39 years after, signs N40b deal

39 years after it was abandoned, the Enugu State government on Tuesday initiated bold moves to revitalise the multimillion-naira Sunrise Flour Mills Industry.

The industry went moribund in 1985, exactly two years after it commenced operations in 1983 at the Emene Industrial layout.

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But in a bold move to revive activities at the facility, the state government and Jelfah Nigeria Ltd on Tuesday signed a N40bn deal for the revitalisation of the long-moribund firm.

The deal, which was signed at the Government House, Enugu, saw Jelfah acquire a 60 per cent equity stake in Sunrise Flour Mills and is expected to invest N24bn in the iconic mills, while the state government retains 40 per cent based on the existing assets of the company.

Speaking at the brief signing ceremony and public announcement of the transaction, Governor Peter Mbah stated that the milestone, coming on the heels of the N100 billion deal to resuscitate the hitherto dying Enugu United Palm Products Limited (UPPL), demonstrates his administration’s determination to grow the state’s economy from $4.4bn to $30bn through private sector investment.

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“Just a few months ago, we secured an investment size of N100bn with a company known as Pragmatic Palms Limited, and today we have just witnessed Enugu State, again, securing another investment size of N40bn.

“This investment will see Jelfah Group investing N24bn into the existing Enugu Sunrise Flour Mills. N22bn will be directed into revamping and resuscitating the Sunrise Flour Mill, and N2bn will come to the state in cash.

“The Special Purpose Vehicle (SPV) will also own 10,000 hectares of farmland, where we will cultivate the inputs for the flour mills such as cassava and grains.

“This is a testament that when we say Enugu State is open for business, we truly mean it. We understand how to make a win-win deal, both for the investors and for the people of Enugu State,” Mbah stated.

He assured Jelfah Group of continued support, urging other prospective investors to come and invest in the state.

“We hope that this signals to other investors who may still be on the fence that Enugu is actually ready for business. We are committed not only to creating the enabling environment but also to working with investors to help de-risk investments and grow their businesses,” the governor added.

Speaking, the Chairman of Jelfah Group, Moses Saromi, stated that they were attracted by Governor Mbah’s vision, dynamic leadership, and rapidly improving ease of doing business in Enugu State under his leadership, saying that Jelfah was eager to transform Sunrise Mills into a centre of excellence.

“Your policies have unlocked new opportunities for private sector participation, and Jelfah is proud to be part of this progressive movement.

“This acquisition of a 60 per cent equity stake not only aligns with Jelfah’s long-term vision but also furthers the governor’s ambition of empowering the people, revitalising moribund assets, and ensuring sustainable development. Together with our consortium partners, our goal is to transform Sunrise Flour Mills into a centre of excellence, harnessing our collective expertise to drive growth and value creation.

“So, we firmly believe that this partnership will catalyse positive change, spark job creation, elevate local production capacities, and contribute significantly to the socio-economic advancement of Enugu State,” he said.

“We have worked hard in the last months to get to this point. We have short-term, medium-term, and long-term plans for the flour mills. Activities will commence in earnest. In another 90 days, you will see a lot of movements and activities regarding the revitalisation of the flour mills.

“Our activities will include the recruitment of people to run the plant, who will primarily be indigenes of the state. As the governor rightly said, we are creating a model that will provide the inputs for the mills, such as the 10,000 hectares of farmland to cultivate all the necessary inputs,” he said.