African Export-Import Bank announced, at the 2022 AfriCaribbean Trade & Investment Forum, the finalisation of a lending deal with Ganic Foods Limited, which takes the form of a N16.56bn Dual Tranche Export Development Facility
A statement said the deal had been designed to support Ganic in its construction of a palm kernel expellers plant, a soyabean solvent extraction plant, as well as a vegetable oils refinery, all located within an area in excess of 50,000 square meters at Odofin-Oke Village, along Shagamu-Abeokuta Expressway, Ogun State, Nigeria. The total project cost is estimated at N27bn.
In financing the project, the statement said Afreximbank supports the development of a local substitute for imported edible oil by locally producing high quality soya and vegetable oils, and thereby the reduction of Nigeria’s dependence on imported (and, in some cases, smuggled) edible oils.
The reduced exposure to imports would also go some way to insulate Nigeria from the pricing volatility of edible oils on international markets.
It stated that, “This development has the capacity to bridge overall production shortfalls and address the market gap driven by demand for high value edible oil.
“Immediate benefits of the project include the creation of over 200 jobs (with an estimated 1,000+ indirect labours) and support for 2,000 local farmers in Nigeria– once operational.”
The Founder/Chief Executive Officer, Ganic, Mr Deji Akinyanju, expressed the company’s appreciation to Afreximbank for its support and cooperation with Ganic all through the process, its continued support for business growth in Nigeria and its commitment to the development of ‘On-the-Spot’ processing of agricultural commodities in Africa for the local and export markets.