American Firm Signs $300m Cassava Deal With Ogun Government
14th May 2007

Ogun State Government, recently signed a Memorandum of Understanding (MOU) with an American company to operate a $300 million integrated cassava industry designed to produce ethanol fuel, cassava flour and starch.

According to the Special Adviser to Ogun State Governor on Economic Planning, Miss Yosola Akinbi, "Ogun State Government is very happy that its efforts to partner with the private sector is paying off". She said: this is one of the things we would like to see at a higher level and to leave a legacy of agricultural development in the state, we are therefore happy and honoured that out of 36 States, the consortium choose Ogun State."

Speaking at the occasion, Dr A.S Eka, representing F.C.I Commodities Inc of California, United States of America, said his company will finance the project which is expected to produce about 200,000 litres of ethanol per day, 200,000 metric tons of starch per year and 200,000 metric tons of cassava flour every year. He confirmed that F.C.I commodities Inc has so far raised $31 million to finance equipment for small pilot plants, $85 million to finance the ethanol plant, $45 million for the starch factory and $30 million for the cassava flour mill.

Explaining the terms of the joint venture, Engr. Biodun Oduntan, the Managing Director of Glihio Nigeria Limited, the facilitator of the project, said "We have tapped into the goal of Ogun State in the pursuit of self sufficiency in the production and processing of cassava by facilitating technical expertise and finance to prosecute the $300 million project. In the joint venture which will culminate in the incorporation of a joint venture Limited liability company to be called Gateway Cassava Industries Plc, F.C.I commodities Inc of U.S.A and Glihio Nigeria Limited will provide 100% of the fund needed for the project while Ogun State Government will provide 20,000 hectares of land and issue a certificate of occupancy in respect of the landed property.

Speaking further, Engr. Bodunrin Oduntan said "the necessary funds had been sourced and we have designed all the plants placed order for some of the equipments needed for the pilot plant infrastructure. We expect that by August 30th 2007 the first pilot plant will be installed, by that date a high level training in scientific management of large and mechanised farm to be handled by experts from Zimbabwe and Mozambique would have reached an advance stage.

"Furthermore, with the help of Ogun State Government we plan to organise villages into cooperative enterprise for cultivation and supply of cassava to argument the supply from our own farms in order to keep our facilities operating at the optimal level."

Back to Top
Post Your Feedback