NEWS
ABIA REACTIVATES INDUSTRIAL GIANT AS GOV. OTTI RECEIVES OFFICIAL HANDOVER OF STAR PAPER MILL FROM AMCON, SETS STAGE FOR MASSIVE JOB CREATION AND ECONOMIC REVIVAL
In a major step toward restoring Abia’s long-lost industrial glory, the Abia State Government has officially received the moribund Star Paper Mill from the Asset Management Corporation of Nigeria (AMCON), signaling a new dawn for manufacturing, job creation, and economic expansion in the state.
The long-anticipated handover, conducted on Friday, marks a strategic milestone in Governor Alex Otti’s industrial rejuvenation agenda. The facility which once stood as one of Nigeria’s foremost paper production companies has been inactive for years, but is now set to be revived to generate thousands of jobs and reawaken the state’s manufacturing strength.
According to the Abia State Government, the acquisition is poised to “generate hundreds of direct and indirect jobs” and “unlock vast industrial potentials”, boosting Abia’s profile as a vibrant commercial hub.
Speaking during the official handover ceremony, Governor Alex Otti described the development as a major breakthrough in his administration’s effort to rebuild the state’s industrial landscape. He stated that the takeover represents a “key step in his administration’s industrial rejuvenation plan.”
Governor Otti also revealed that payment processes are ongoing for Afro Beverages Limited another AMCON-controlled facility, adding that the transaction would be finalised in the coming weeks.
Reaffirming his determination to revive the factory, the Governor said bringing Star Paper Mill back to life would “generate thousands of jobs and stimulate private-sector participation.” He added that several prospective investors are already prepared to partner with the state in the facility’s revival.
Governor Otti disclosed that the mill had been previously sold under questionable circumstances, with parts of the agreement violated, leading to its collapse. At its peak, Star Paper Mill employed more than 1,000 people directly and over 5,000 indirectly.
“Reviving the Star Paper Mill will create between 3,000 and 5,000 jobs. That, for me, is the ultimate goal: jobs, jobs and more jobs,” Governor Otti said.
He clarified that the government has no intention of managing the mill directly. Rather, it aims to de-risk the investment and hand it over to competent private-sector operators.
“Our intention is not to run Star Paper Mill. We are acquiring to give it to the private sector. Leadership is key; without it, even resources fail,” Governor Otti added.
He expressed deep appreciation to AMCON for its collaboration, assuring that the state would ensure the mill becomes fully operational, profitable, and job-generating.
In his remarks, AMCON’s Executive Director, Asset Management, Dr. Aminu Mukhtar Dan’amu, praised the Abia State Government for its commitment to reviving the dormant industrial asset.
Describing the facility as “an icon woven into the history of Abia State and Nigeria,” Dr. Dan’amu noted that the factory had fallen into disuse due to financial challenges. He recalled using Star Paper Mill products, especially exercise books during his youth, expressing satisfaction that the mill will now be revitalised.
According to him: “AMCON does not take over assets to destroy them, but to preserve their value. Today, we are proud to transfer this preserved industrial giant to a government committed to revitalisation.”
He emphasized that reviving the mill would strengthen local supply chains, improve household incomes, expand the state’s GDP, and encourage ancillary businesses.
Dr. Dan’amu also highlighted the mill’s historical contributions, noting that it once provided drinking water to the community through galvanised steel pipelines that still exist.
Earlier, the Commissioner for Industries and SMEs, Mazi Mike Akpara, described the handover as “the return of life to our industries” and a significant step in Abia’s industrial resurgence.
He announced that the state had successfully completed the ₦2.5 billion acquisition of Star Paper Mills in Aba and Owerrinta. For Afro Beverages Limited, he said the government had already made a ₦500 million initial deposit, with a structured ₦500 million bimonthly repayment plan in place to clear the outstanding ₦3 billion by 2026.
The Commissioner further revealed that Abia is already engaging with stakeholders to revive other dormant industrial assets, including International Equitable Industries, KAN Biscuits, and the Enyimba Hotel slated to become a five-star hospitality facility.
According to him, restoring these enterprises will boost the state’s GDP, create employment opportunities, and reduce youth restiveness.
He expressly commended Governor Otti for driving the state’s industrial revolution, noting that Abia is now firmly positioned as Nigeria’s renewed manufacturing powerhouse.