Benue’s comatose state-owned companies: A shadow of past glory

For many older residents of Benue State, memories of the past evoke a bittersweet nostalgia—an era when the state truly lived up to its name as Nigeria’s “food basket” championed by the visionary leadership of the state’s first civilian governor, Late Chief Aper Aku.  Our correspondent reports that under his watch, Benue blossomed into an […]

For many older residents of Benue State, memories of the past evoke a bittersweet nostalgia—an era when the state truly lived up to its name as Nigeria’s “food basket” championed by the visionary leadership of the state’s first civilian governor, Late Chief Aper Aku. 

Our correspondent reports that under his watch, Benue blossomed into an industrial powerhouse, a land, where thriving state-owned enterprises not only provided jobs but also fueled dreams and aspirations for countless families.

Adikwu Omale, a resident of Otukpo was one of such people who made fortune working in the now rested state-owned Otukpo burnt bricks.

“It was such a beautiful time. There was no insecurity to worry about. The company provided opportunity for all categories of people to thrive economically but there are no such privileges any longer. It bothers me to see our graduates roaming the streets aimlessly,” Omale said.

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Besides Omale who is now an old man narrating how he fended for his family through one of the present moribund state-owned company, there are many other beneficiaries whom these industries were more to them than just factories—they were lifelines. 

For them, the Otukpo Burnt Bricks factory, the Benue Cement Company (BCC), and the Taraku Oil Mills stood as symbols of ingenuity and progress, churning out products and opportunities in equal measure while the Mega Foods and Beverages Company, Benfruit Nigeria Limited, and Benkims Plastic Nigeria Limited carried the promise of innovation and prosperity. 

Similarly, the Wannune Tomato Company, Mango Juice Plant, and Katsina-Ala Yam Factory completed the narrative of a state fueled by resourcefulness and agricultural abundance, offering its citizens a sense of pride in their food self-sufficiency.

An average Benue citizen back then would always recall that the hum of machinery was the soundtrack of progress, and the sight of workers streaming into these plants was a testament to a thriving economy as they added that these industries gave life to communities, created ripple effects that strengthened local businesses, supported education, and fostered a sense of pride in Benue’s potential.

But today, these once-thriving enterprises stand in ruin, their silence remains a painful reminder of a dream deferred as overgrown weeds now choke the premises where prosperity once blossomed and rusting machines bear witness to decades of neglect. 

Although, some blamed these unfortunate outcomes on mismanagement, corruption and failed policies, however, the effect years after, had rubbed off on the youths of Benue who are left grappling with high unemployment and dwindling opportunities.

Our correspondent recalled that the state was once famous for its owned Benue Burnt Bricks, an industry located in Otukpo local government area which not only created jobs but manufactured the bricks which was used to build some government buildings in the 1980s.

For instance, in those glory days of the Otukpo Burnt bricks, the state government made it a rule for all government’s establishments to patronise the industry while neighbouring states also got their supply from the firm.

The story was no different with the Taraku Oil Mills, which once employed over 600 workers but suffered a major setback in 2009 when 377 employees were laid off in a mass retrenchment. By 2013, the mill had ceased production entirely. Originally established to process vegetable and groundnut oils, maize flour, livestock feeds, and other products, it was known for producing items such as Golden Soya, Royal Corn Oil, Sunflower Oil, Benolina, Benofeeds, Soya Meals, and Benogrits.

The Taraku Oil Mills founded in 1982 with a registered capital of $100 million was envisioned as a critical driver of value addition to agricultural production in the agrarian state of Benue.

Severally, efforts were though made to revitalise the prostrate Taraku mills which test run production in 2013 following its lease it to an investor – Growrich Nigeria limited at the sum of N300 million while production at a small scale was done in 2016.

Though, it was firstly leased to Yelwata Trading company in 2008 by Governor Gabriel Suswam’s  government, however, the contract terminated in June 2009 after it was discovered that the company lacked financial competency to manage the mill.

When the administration of former Governor Samuel Ortom came on board in 2015, it evolved strategies which however failed to breathe life into the Taraku mill alongside the other above-mentioned industries.

All machineries, as findings indicated were installed at the Taraku mills between 1986 and 1987 while it became full fledged operational in 1989, producing the finest edible oil. Sadly, the mill, originally intended to add value to agricultural production in the agrarian state started wobbling at the wake of year 2000.

And successive administrations in the state including the immediate past Governor Ortom’s government could not walk their talks in reviving the moribund companies which they promised during electioneering to resuscitate when elected.

Most of the state’s administrations since the return to democracy in 1999 promised to revive the ailing industries and establishing new industries. But after all said, not one of the moribund industries came alive even in all their years in the saddle of leadership.

For instance, during its tenure, the Ortom administration explained that the equipment at the Otukpo Burnt Bricks factory was practically obsolete. This was cited as one of the reasons for listing it among 24 other moribund industries for sale to prospective buyers in 2021. However, the company remained in a comatose state even as the government exited office.

The administration also noted that the Taraku Oil Mills remained nonfunctional because “it had completely failed and lacked the capacity to operate.”

However, in recent times, there seems to be a glimmer of hope, as the current government has started establishing new industries, including bread factories, a nail factory, a nylon and polythene production facility, and a brewery. Additionally, it has pledged to revamp moribund industries.

Like his predecessors, Governor Hyacinth Alia also promised during his election campaign to revive the Burnt Bricks factory, Taraku Oil Mills, and other moribund state-owned companies as he cited job creation, the high demand for bricks by both governments and individuals across the northern geopolitical zones of the country as a key reason for the commitment.

The governor in June, this year reiterated his pledge to rejuvenate the multimillion-dollar Taraku Mills Limited located in Gwer East Local Government Area of the state during his thank-you tour to the people of Gwer West/Gwer East Federal Constituency of the state.

He disclosed that his administration already started the process of reviving the Taraku Mills Limited, lauding the community for safeguarding the company from vandalism over the years. 

Before then, he promised that his administration would build at least 10 industries within the four-year of its mandate and also assured that his government will revive moribund industries and establish new ones to improve the economic development of the state.

Interestingly, Alia, only a few days ago during the combined convocation ceremony at the Benue State University (BSU) in Makurdi emphasised that his administration intends to leverage on the recorded gains so far to push development in all sectors of the state. 

The governor added, “Therefore, it is our determination to ensure that our moribund indigenous companies including the Wannune Fruit Juice factory and Taraku Mills Limited, that are concerned with preservation and storage of agricultural products, are repositioned to achieve their set goals. Through this, we will be able to create more job opportunities for our teeming youth across the state.”

Similarly, the state’s Commissioner for Commerce and Industry, Alumo Orpin, assured during a telephone conversation with our correspondent in Makurdi that most of the moribund state-owned companies are set for revival starting early next year.

Alumo said, “We have been making efforts through the Benue Investment and Property Company (BIPC), which is handling the process to revamp the ailing industries. Taraku Mills has already been handed over to an investor. We have signed an MoU (Memorandum of Understanding) for both Taraku Mills and the tomato factory in Wannune, with the formal agreement expected to be finalised in January. 

“We are also preparing to sign an MoU for the Benue Sheraton, which has been abandoned for over 30 years. By the first quarter of next year, we hope to see a turnaround, with the retooling of machines at Taraku Mills set to begin.

“For Otukpo Burnt Bricks, an investor is already preparing to take over, and we anticipate progress by the first quarter of next year. Once everything is in place and operations commence, we will publicly announce it. While we could have signed MoUs earlier, we want agreements that are workable and will deliver tangible results.”

In the meantime, Dr. Raymond Asemakaha, the Managing Director/CEO of BIPC, has expressed optimism that the milestone so far achieved in the newly completed projects under his watch to include the BIPC Polythene printing and Nylon production Factory, BIPC Nails Ltd, and the expansion of BIPC Bakery and Water factories marked a giant stride in the collective pursuit of economic empowerment, industrial growth, and sustainable development for the people of Benue State.