AMCON Hands Over Star Paper Mill to Abia State Government

The Asset Management Corporation of Nigeria (AMCON) has formally handed over the long-abandoned Star Paper Mill to the Abia State Government, marking a major milestone in the state’s industrial revival drive under Governor Alex Otti.

Star Paper Mills Limited, founded in 1976 by renowned Abia-born entrepreneur, the late Chief Nnanna Kalu, was once a major employer of labour, providing thousands of jobs to residents of the state during its years of operation.

Speaking at the handover ceremony held at the Banquet Hall, Government House, Umuahia, Governor Alex Otti described the recovery of the asset as a fulfillment of his campaign promise to revive moribund industries across the state. He listed Star Paper Mill, Aba Textile Mills, Ogwe Golden Chicken and International Equitable, among others, as key targets of his administration’s industrial rejuvenation agenda.

The Governor assured that Star Paper Mill would be revived and, when fully operational, is expected to generate between 3,000 and 5,000 jobs, while also attracting strong private sector participation.

Governor Otti disclosed that the mill had previously been sold under questionable circumstances, with breaches in the terms of agreement. He explained that the asset was recovered through his direct intervention and the cooperation of AMCON, including the refund of payments made by the company that had acquired the facility.

He further revealed that payments for another AMCON-managed asset, Afro Beverages Limited, are ongoing and expected to be concluded in the coming weeks. According to him, prospective investors are already engaging with the state to partner in the operation and management of the facilities.

The Governor emphasized that the role of government is to de-risk investments and attract competent private sector operators, challenging the Aba and Umuahia Chambers of Commerce (ACCIMA and UCCIMA) to take the lead. He stressed that the government has no intention of running the mill but will hand it over to capable private investors once revitalised.

“As part of my manifesto, I promised our people that we would bring back moribund industries, and Star Paper Mill is one of them,” Governor Otti said. “Our intention is not to run the factory but to de-risk it, lead from the front, and invite the private sector to take charge. We are acquiring it not to keep it, but to hand it over to competent managers.”

Governor Otti thanked AMCON for its cooperation and assured that the state government would ensure the factory becomes productive, profitable, and a major source of employment.

Also speaking, the Commissioner for Industry and Small and Medium Enterprises, Mazi Mike Akpara, described the handover as a restoration of life and hope to Abia’s industrial sector. He disclosed that the state government has completed the acquisition of Star Paper Mills Limited with a payment of ₦2.5 billion and has also made an initial deposit of ₦500 million for Afro Beverages Limited, Aba.

The Commissioner noted that engagements are ongoing to revive other moribund assets, stressing that industrial revitalisation would significantly boost the state’s GDP and create thousands of jobs.

Earlier, the Executive Director of AMCON, Dr. Aminu Mukhtar Dan’amu, described Star Paper Mill as more than an asset, calling it “an icon woven into the industrial history of Abia State and Nigeria.” He recalled using products from the factory during his youth and expressed confidence that the facility would be successfully revived under the current administration.

“Today, we are proud to transfer this preserved industrial giant to a government committed to its revitalisation,” Dr. Dan’amu said, adding that the revived factory could generate between 3,000 and 5,000 direct and indirect jobs.

He noted that the handover highlights the importance of federal-state collaboration in preserving strategic national assets and driving economic development, while commending Governor Otti for his determination in reclaiming the facility.

The event was witnessed by the President of the Aba Chamber of Commerce, Industry, Mines and Agriculture (ACCIMA), Mazi Jude Nwosu; a major stakeholder, Chief Eke Eleanya; the President of the Umuahia Chamber of Commerce, Industry, Mines and Agriculture (UCCIMA), Elder Dr. Catherine Chika Igbokwe; commissioners; and other senior government officials.