The Asset Management Corporation of Nigeria (AMCON), on Friday, officially handed over the moribund Star Paper Mill Limited, Aba to the Abia Government, marking a significant step towards the state’s industrial revival.

Speaking at the brief ceremony in Umuahia, the Executive Director (Asset Management) of AMCON, Dr Aminu Dan’amu commended the State Government for its commitment to acquiring the factory.

Dan’amu said that the factory, which had fallen into disuse due to financial distress, represented more than an asset, describing it as “an icon woven into the history of Abia State and Nigeria”.

He recalled using products from the factory, including exercise books, during his youth and expressed joy that the facility would soon be revitalised under state leadership.

“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,” Dan’amu said.

He also said that the factory could restore and create between 3,000 and 5,000 direct and indirect jobs, when revived.

He said that it would strengthen the local supply chain, boost household incomes, improve the state’s Gross Domestic Product, and encourage ancillary businesses across Abia.

He described the acquisition as a “milestone for the state’s industrial development” and pledged to revive the factory to its former glory.

Dan’amu expressed the confidence that the State Government would implement measures to maximise employment and economic opportunities from the factory.

According to him, the revival of the factory aligns with the present administration’s economic master plan.

He further said that the factory, which once supplied products nationwide, also served the local community by providing drinking water through galvanised steel pipelines that exists to date.

Dan’amu said that the handover  underscores the importance of federal-state collaboration in preserving strategic national assets and boosting economic development.

Responding, Gov. Alex Otti expressed his administration’s resolve to revive the factory, promising to create thousands of jobs and attract private sector participation.

Otti described the takeover as a key step in his government’s industrial rejuvenation plan.

He said the factory had previously been sold under questionable circumstances, with parts of the agreement breached.

He said, “The board had to address these breaches, and Star Paper Mill was returned to proper administration for revival.”

He said that before its closure, the company employed over 1,000 people directly and more than 5,000 indirectly.

“Reviving it will create between 3,000 and 5,000 jobs. That, for me, is the ultimate goal – jobs, jobs, and more jobs,” he said.

Otti also said that his government’s role was to de-risk the investment and attract capable 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,” he said.

The governor also disclosed that payment for Afro-Beverages, another industrial outfit under AMCON, was still ongoing and would be completed in the coming weeks.

He said that prospective investors were ready to partner in reviving the company.

Otti expressed gratitude to AMCON for its cooperation and assured it that the government would ensure that Star Paper Mill became profitable, produced goods, and able to generate employment.

Earlier, the Commissioner for Industries and SMEs, Mr Mike Akpara, described the handover of the factory as “the return of life to our industries” and a major milestone in the state’s industrial resurgence.

Akpara said that the State Government had concluded the acquisition of the factory located in Owerrinta and Aba, with the payment of N2.5 billion, while an initial deposit of N500 million had been made for Afro Beverages Limited.

He said that a structured bi-monthly repayment plan of N500 million had been put in place to clear the remaining N3 billion for Afro-Beverages within the 2026 fiscal year.

The commissioner also said that the state was actively engaging stakeholders to reactivate other dormant assets, including the International Equitable Industries, KAN Biscuits, and to complete the Enyimba Hotel as a five-star facility.

He said that the revival of the once-vibrant Aba-based enterprises would boost the state’s GDP, create jobs, and reduce youth restiveness.

Akpara commended the governor for his commitment to industrial development.

He said that the present administration’s vision extends beyond restoring moribund factories to positioning Abia as Nigeria’s renewed industrial hub. (NAN)