Abia State Governor, Dr. Alex Otti, has announced the successful completion of the state government’s acquisition of the long-defunct Star Paper Mills Ltd in Aba, signaling a determined effort to return the factory to profitability, productivity, and large-scale employment generation. The state concluded the acquisition from the Asset Management Corporation of Nigeria (AMCON) with a final payment of N2.5 billion.
Governor Otti confirmed the landmark deal during the formal handover ceremony of the asset by AMCON at the Banquet Hall of the Government House, Umuahia. Established in 1976 by the late Abia entrepreneur Chief Nnanna Kalu, the factory was once a significant source of livelihood, providing thousands of jobs before its subsequent collapse into disuse.
The recovery of the asset, according to sources, became necessary after the company was previously sold under controversial circumstances, with alleged breaches of the sales agreement. The current administration’s intervention, in cooperation with AMCON, facilitated the successful recovery, with AMCON reportedly refunding payments made by the previous buyer.
Governor Otti stated that the acquisition aligns perfectly with his campaign pledge to revive moribund industries, specifically listing Star Paper Mills, Aba Textile Mills, Ogwe Golden Chicken, and International Equitable as priority targets. He promised that once operational, the factory is projected to generate between 3,000 and 5,000 direct and indirect jobs while attracting crucial private sector investment.
Further broadening his industrialization agenda, the governor disclosed that payment for Afro Beverages Ltd, another industrial facility under AMCON, is expected to be finalized within the coming weeks. He noted that prospective investors are already lined up to partner with the state in revitalizing these companies. Governor Otti clarified the government’s approach, saying, “The government’s role is to de-risk investments and attract capable private sector operators.” He then challenged the organized private sector, represented by the Umuahia and Aba Chambers of Commerce, to assume responsibility for running the revived industries efficiently.
Mazi Mike Akpara, the Commissioner for Industry and SMEs, hailed the handover as a pivotal moment in Abia’s industrial resurgence, emphasizing that bringing these factories back to life will significantly boost the state’s Gross Domestic Product and alleviate unemployment. AMCON Executive Director, Dr. Aminu Mukhtar Dan’amu, praised the governor’s commitment during the ceremony, describing Star Paper Mills as “an icon woven into the history of Abia State and Nigeria.” The handover event was witnessed by leaders of the Aba and Umuahia Chambers of Commerce, alongside senior government officials
