Abia govt acquires Star Paper Mills Ltd, Aba for N2.5 billion

Abia State Governor, Dr. Alex Otti, has pledged to make the moribund Star Paper Mills Ltd, Aba, profitable, productive, and a major source of employment. The state government has fully concluded the acquisition of the factory with a N2.5 billion payment.

Governor Otti made the announcement during the formal handover ceremony of Star Paper Mills by the Asset Management Corporation of Nigeria (AMCON) at the Banquet Hall of the Government House, Umuahia. Established in 1976 by the late Abia-born entrepreneur Chief Nnanna Kalu, the factory once provided thousands of jobs before falling into disuse.

Sources indicate that the company was previously sold under questionable circumstances, with parts of the agreement breached. The recovery of the asset was made possible through the intervention of the Alex Otti-led administration, with the cooperation of AMCON, which also refunded payments made by the previous buyer.

Governor Otti said the acquisition aligns with his campaign manifesto to revive moribund industries, including Star Paper Mills, Aba Textile Mills, Ogwe Golden Chicken, and International Equitable. He promised that the factory, once operational, would generate between 3,000 and 5,000 direct and indirect jobs while attracting private sector investment.

He also disclosed that payment for Afro Beverages Ltd, another industrial facility under AMCON, would be completed in the coming weeks, noting that prospective investors are ready to partner in revitalizing these companies.

“The government’s role is to de-risk investments and attract capable private sector operators,” Otti said. He challenged the organized private sector, through the Umuahia and Aba Chambers of Commerce, to take responsibility for running the industries efficiently.

Commissioner for Industry and SMEs, Mazi Mike Akpara, described the handover as a major step in Abia’s industrial resurgence, noting that reviving industries would boost the state’s GDP and create jobs.

Speaking at the ceremony, AMCON Executive Director, Dr. Aminu Mukhtar Dan’amu, commended the governor for his commitment, describing Star Paper Mills as “an icon woven into the history of Abia State and Nigeria.”

The handover was witnessed by leaders of the Aba and Umuahia Chambers of Commerce, Commissioners, and senior government officials.