Enugu United Palm Products invests $2.2m in palm oil refinery, starts production

Enugu United Palm Products Limited (UPPL) has started producing palm oil for Nigeria. This company is a partnership between Pragmatic Palms Limited and the Enugu State Government. They also plan to expand into refined products and set up a new industrial complex.

The Managing Director, Prof George Nwangwu, announced this on Monday. He led other directors to Government House in Enugu to update Governor Peter Mbah on the company's progress over the last two years.

Nwangwu shared that UPPL has restored its plantations in Ibite-Olo, Umulokpa, and Ugwu-Oba. These areas are in Ezeagu, Uzo-Uwani, and Oji River Local Government Areas of the state.

He explained that the company has replanted over 1,000 hectares and is gradually replacing old palm trees, some over 50 years old.

"When we took over, the place was thick forest and nothing but a dead place. We came in and turned the place from being a forest into a plantation.

"We have cleared the whole place, pruned the trees that were there and started replanting. The trees we met were very old, over 50 years old, and so they needed to be replaced. Gradually, we are replacing them. So far, we’ve planted over 1,000 hectares. The idea is to keep planting until we replant the entire plantation and renew all the trees that are there," he said.

The UPPL boss mentioned they are moving beyond just farming. They are investing in processing and value addition. They have installed mills to improve the quality and quantity of palm oil production.

Nwangwu also revealed that the company is investing $2.2 million in a refinery. This refinery will process Crude Palm Oil (CPO) into olein and stearin and will refine palm kernel oil.

"We also understand that this is a business and not just planting. Agriculture has moved beyond planting alone. We need to process because value addition is important. So, we’re milling our oil now. We’ve improved the quality and quantity of the oil that we’re producing.

"We have installed mills and also invested heavily in refining the products further down the line. We’re investing about $2.2 million to install a refinery. The refinery will not only refine our Crude Palm Oil (CPO) into olein and stearin, it will also refine our palm kernel oil," Nwangwu said.

He added that the company is working on a new industrial complex to bring together its production and processing operations.

Nwangwu also announced that UPPL has launched its palm oil brand, EVOP. This brand is already available in markets and supermarkets across Nigeria. Sachet packaging is expected to hit the market in two weeks.

He explained that the name EVOP connects the product with the region's agricultural and industrial history. This history includes the former AVOP vegetable oil brand produced in Nachi, Udi LGA.

"We chose the name EVOP to make sure that we keep in touch with our historical foundation. Some of us who are old enough would remember AVOP vegetable oil being bottled in Nachi, Udi. We feel that this is the product of our people and we had to connect with our historical beginnings.

"That’s why we called it EVOP, to connect with and remind people of our historical AVOP," he said.

Nwangwu stated that the company aims to make its product available to households across Nigeria while keeping high standards for quality, natural production, and traceability.

"The important takeaway about this palm oil is that it’s natural. Our plantations are in Ibite-Olo, Umulokpa and Ugwu-Oba. You can see the trees there. If you go there, you can see where we harvest the fruit bunches, how we mill the fresh fruit bunches and how we package them.

"Everything is done in-house. Nothing is contracted. We are end-to-end, and we also have certification from NAFDAC, SON and all the relevant agencies.

"If you look at our product, you’ll see a barcode there, and you’ll also see a code that you can scan to tell you where the product is from. For us, traceability matters, and that is the fundamental advantage of our palm oil," Nwangwu added.

He said the company's growth is expected to create jobs, boost local economies, and develop the state's agricultural value chain.

Governor Mbah praised the partnership between the Enugu State Government and Pragmatic Palms Limited. He said it is a model worth copying. It shows the government's commitment to reviving inactive assets for the benefit of Ndi Enugu.

He promised that the state government would meet all its obligations under the partnership. The government will also provide the support needed for UPPL to reach its full potential.

Mbah also supported the company’s plan to list on the Nigerian stock market within four years. He said Enugu needs companies that can attract public investment and create more value for the state.

"This is consistent with the state’s ambition to optimise these assets and to grow them and make them big. We are talking about an investment outlay of over N100 billion, and if in four years you are targeting going to the market, we are with you on that. We will give you all support," he said.

The governor revealed that the state government is about to start two major road projects. These projects will improve access to the company’s plantations, including the road from Umumba Ndiagu to Ebenebe.

He also said he has directed that the headquarters of the state’s Forest Guards be located at Ibite-Olo. This will help strengthen security around the plantation. Mbah assured the company that the government would address any encroachment on its land.

Mbah also promised UPPL that the government would provide the 6,700 hectares agreed upon under the partnership. They will work with the company and local communities to secure more land if UPPL decides to expand to 10,000 hectares.

He stressed the importance of keeping clear and honest financial records ahead of the planned listing. The government will hold regular meetings with the company to quickly address any challenges.