The Enugu State United Palm Products Ltd., UPPL, is one of the numerous initiatives of the former Premier of the defunct Eastern Region, the late Dr. Michael Okpara, and had lain fallow for decades.

As a government focused on agriculture and agro-industrialisation, UPPL was, expectedly one of the many moribund assets penciled down for revitalisation by Governor Peter Mbah in line with his campaign promise to convert the state’s dormant assets to productive assets and grow the state’s economy exponentially from the current $4.4bn to $30bn through private sector investments. This culminated in the N100bn deal between the Enugu State Government and Pragmatic Palms Ltd., a subsidiary of Diamond Stripes Ltd. on Thursday, May 9, 2024 after months-long negotiation and due diligence that started way back in 2023.

THE N100BN DEAL

Enugu State Government IS NOT releasing N100bn or any dime to Pragmatic Palms Ltd. Instead, Pragmatic Palms Ltd, a Special Purpose Vehicle (SPV) for the partnership, will finance the revitalisation of UPPL. Pragmatic Palm Ltd. will provide finance for 60 per cent of the transaction value, while the Enugu State Government will provide the plantations valued as 40 per cent equity.

INCORPORATION OF PRAGMATIC PALMS LTD*

Because several parties/investors are involved, it became imperative, as is the best international practice, to register a Special Purpose Vehicle (SPV) as the platform to transact the deal. Pragmatic Palms Ltd. was duly incorporated before the signing of the agreement.

For the avoidance of doubt, however, it is not the case in this instance, it is apposite to also note that the Companies and Allied Matters Act (CAMA), 2020, provides for Pre-incorporation Contract.

Section 96 (1) of CAMA, 2020, provides: “Any contract or other transaction purporting to be entered into by the company or by person on behalf of the company prior to its formation may be ratified by the company after its formation and thereupon the company shall become bound by and entitled to the benefit thereof as if it has been in existence at the date of such contract or other transaction and had been a party thereto.”

CORPORATE GUARANTOR (DIAMOND STRIPES LTD)

As demanded by the Enugu State Government, Pragmatic Palms Ltd. provided a guarantor, which is Diamond Stripes Ltd, a reputable and huge company that has done investments worth over $20bn spanning power and renewable energy sector, port sector, and agricultural sector since 2013. Diamond Stripes Ltd. is the sole investor in Onitsha River Port and has invested heavily in the agricultural sector where it is the largest owner of silo complexes in Nigeria. It was involved in the acquisition of 600MW Shiroro Hydroelectric Power plant in 2013, concessions of 30MW Gurara Hydroelectric Power Plant in 2019, and establishment of 300MW Shiroro solar power project in 2021.

SECURING ENUGU STATE’S INTEREST

The state’s interest in the N100BN UPPL deal is well secured, benefitting from Governor Peter Mbah’s experience as an investment finance expert and an entrepreneur, who has handled multi-billion-dollar projects himself. Besides asking for and getting a corporate guarantor on the part of Pragmatic Palms Ltd, the government also demanded for and got bank guarantors from Pragmatic Palms. Importantly, performance targets and timelines were equally set in the Agreement for Pragmatic Palms Ltd. failing which the Enugu State Government is free to revoke the deal and reassume total ownership of United Palm Products Ltd., UPPL.

In addition, the Enugu State Government is represented on the company’s Board, including the Chairmanship of the Board, as part of the steps taken to secure the state’s interest.

MD’S PROFILE

The MD of Pragmatic Palms Ltd., who is also the MD/CEO of Diamond Stripes, George Nwangwu, is a professor of Project Financing Law, who has led transaction teams that have participated in the consummation of over 100 privatisation or Public Private Partnership (PPP) transactions worth over $20 billion across Africa.

Prof. Nwangwu was the Head of Infrastructure Finance at the Ministry of Finance under the leadership of Dr. Ngozi Okonjo-Iweala, during which he led the team that delivered the Second Niger Bridge deal.

He is a Professor of law at Nile University and an Extraordinary Professor at the Department of Mercantile Law, Stellenbosch University. He was appointed a Senior Fellow at the Mossavar- Rahmani Centre for Business and Government, Harvard Kennedy School in 2023 as well as an Honorary Senior Research Associate in the Bartlett School of Construction and Project Management, University College London since 2022; He is the Director General of the Global Centre for Law and Business, Abuja.

CONLUSION

Clearly, it is a new dawn for the United Palm Products Ltd. to the benefit of the people of Enugu State after decades of rot and neglect. The partnership is promising and the project in good hands.

Tomorrow is here!

Uche Anichukwu
SSA (External Relations) to the Governor of Enugu State

The Presidency has said President Bola Tinubu will not take sides in the ongoing political crisis rocking Rivers State.

Governor Siminalayi Fubara and Nyesom Wike, his predecessor who is now Minister of the Federal Capital Territory (FCT), have been at daggers drawn.

Although Wike influenced the emergence of Fubara, the duo fell out less than six months after the governor took charge of the state.

Tinubu had intervened in the crisis, making both camps to sign a peace accord. However, they returned to warring path after few weeks.

The crisis reached its height when a Rivers High Court restrained lawmakers loyal to Wike from parading themselves as members of the state assembly.

Speaking during an interview on TVC, Ajuri Ngelale, Special Adviser to the President on Media and Publicity, said anyone with the belief that the President would take their side in the political crisis would be disappointed.

Ngelale insisted that Tinubu won’t allow any attempt to frustrate the Rivers government.

He said: “I believe that anyone who believes that by their actions, whether it’s from the Federal level, State level or the legislative branch in the State or the executive branch in the state;

“…if they are banking on Mr. President to take sides on this matter, they’re mistaking and they’ll be disappointed. Mr. President will not do that. What he will do is to ensure that everybody has what they need in order to work.

“He will also ensure that any attempt to frustrate the operation of the Rivers State Government from conducting its affairs in a way that it would benefit the Rivers people, that’s obviously not going to be allowed by this President or anybody else. So, I think there’s a need for all stakeholders to understand that Mr President won’t take sides.”

Hard times await those dumping refuse indiscriminately in parts of Enugu capital city as the state government has imposed a fine of N50,000 against any person caught in the act.

Already, the government has mandated a special sanitation taskforce that will commence operation in the city with effect from Monday, May 13, 2024.

This was contained in a public service announcement issued  by the Secretary to the State Government, SSG, Prof. Chidiebere Onyia in Enugu on Sunday.

The government expressed its determination to ensure a clean and hygienic environment and promote the healthy living of the people.

It reads:

ENUGU STATE GOVERNMENT

PUBLIC SERVICE ANNOUNCEMENT*

Enugu Gov’t begins enforcement of ban on indiscriminate dumping of wastes

The Enugu State Government hereby reminds the general public of its determination to ensure a clean and hygienic environment and promote the healthy living of the people.

In this regard, Government hereby announces that it has started enforcing the ban on indiscriminate and random dumping of refuse and disposal of unbagged wastes.

Defaulters will be arrested and fined fifty thousand naira (N50,000). A Special Sanitation Taskforce will patrol the state starting from Monday, May 13, 2024 to arrest offenders.

Those in the habit of throwing or dumping refuse from moving vehicles, in our waterways, on our roads, or in our market places are hereby warned to desist immediately or face the consequences.

Everyone should please inform their families, children and neighbours that dispose wastes early in the morning that all wastes must be bagged using ESWAMA-approved bin bags and disposed properly.

Also, all sorting by recycling companies should move to the landfill at Ugwu Onyeama. Anyone seen sorting plastics and other materials from waste dumps in any part of the city will be arrested and made to face the law.

Be guided accordingly.

Signed:
Professor Chidiebere Onyia
Secretary to the State Government
May 11, 2024