In order to achieve a combination of production and service-oriented economic transformation in Edo State, Governor Godwin Obaseki has attracted a N35 billion oil palm project (10,000 hectares) to Evboesi, Evbonogbon, and nearby communities in the state’s Orhionmwon Local Government Area.
In the same vein, he has attracted a N24 billion integrated agricultural project to Ologbo Community in the State’s Ikpoba Okha Local Government Area, which has boosted the economies of the host communities by creating jobs for the youths and establishing support infrastructure such as boreholes, health care centers, electricity, and good schools.
According to World Bank expert advice, African countries and sub-nationals must develop an enabling environment that will attract private investments to crucial sectors such as agriculture, energy, and long-term infrastructure such as road and rail transportation.
Governor Obaseki hailed the oil palm project as a long-term initiative that will provide enormous economic advantages to the state in the future during a working visit to the projects in Evboesi on Friday, June 17,2022.
He said that “After an audit of our forests, we found out that the forests were badly degraded in Orhionmwon and Ovia local government areas and elsewhere, and rather than abandon the land, we decided to get investors to come and regenerate the forests.
“We are starting with this, we campaigned during our reelection period that we will transform the economies of our communities. The communities have been cooperative and we have adopted global best practice in the oil palm program to ensure responsible oil palm business.”
“We are using oil palm to reforest, and we expect about 60,000 hectares in Ovia as well,” Obaseki stated while planting some oil palm seedlings to officially kick start cultivation of the 10,000 hectare Saro Oil Palm farm in Evboesi. “This will become the backbone of our economy in the future and today we are laying the basis for Edo to be Great Again,” he said.
The Governor promised the Enogie of Evboesi, Festus Ogiefo Iduoze, during a courtesy visit that Saro Oil Palm Limited and his administration will continue to provide infrastructure such as roads, health care facilities, schools, and jobs for the people.
Enogie Iduoze thanked the Obaseki administration for obtaining the investment, which he said “has put to rest the tension between Evboesi and neighboring communities in Delta State over boundary-related issues, as well as the expulsion of kidnappers from their forests.”
The traditional ruler requested that the Governor send doctors, nurses, and other health personnel to a community cottage hospital supplied by the Nigerian Gas Company.
Mr. Churchill Oboh of the Edo State Oil Palm Programme (ESOPP) explained the amount of money involved in the oil palm investment in Orhionmwon, saying Saro Oil Palm Limited is investing $8500 per hectare, which translates to N35 billion (using the official exchange rate) for the 10,000 hectares the company is cultivating.
Earlier at the N24 billion integrated agricultural project in Ologbo, Ikpoba-Okha Local Government Area of the State, Obaseki said: “This project is very significant and important as it is a project where almost a 100 percent of raw materials needed are sourced locally and 100 per cent of the outputs are feedstock to other companies and industries, particularly in the food and beverages sector, whether it’s ethanol or carbon dioxide.”
The Governor added: “This transaction is significant as it has introduced a new dimension in getting our private sector investors to invest in infrastructure in the state. Today, this 3.6km road is being constructed by Saro Africa from the tax credit which the company should have paid.
“It’s a very innovative finance method; the first to be used by a state government in Nigeria. The federal government does tax credit for big, large corporate organizations but here, we, as a state, have been able to attract an investor and used his tax credit to enhance infrastructural development in the state.
“We are lucky in the State because we have an investor and partner like Saro Africa who believes in Africa, Nigeria, and in our state. These projects were conceptualized about five years ago but construction could not commence until last year due to various challenges.”
The integrated agricultural project is a joint venture between Saroafrica and Mohinani Group under the Green Hills Agric Projects, according to Mr. Rasheed Sarumi, Chief Executive Officer of Saro Group of Companies.
He guaranteed that the N24 billion project, which is set to be completed in the first quarter of 2023, will benefit the host community significantly.
He explained: “This is an integrated agricultural project. This factory needs 480 tones of cassava per day and there are about 5,000 hectares of land to grow. Already 1,500 have been grown; 350 people from neighboring communities will work here on the feedstock alone. The 480 tones per day will be converted to waste for feedstock for the piggery.”
The working tour ended in Ologbo N’ Ugu, also in the Orhionmwon Local Government Area, where the Governor committed to spend more in the area’s infrastructure.