KEY POINTS

• Benue Investment and Property Company says its stock valuation rose from ₦7.949 billion to ₦25.151 billion in three years.
• The company attributes the increase to factory rehabilitation, new industrial projects and a shift towards local production.
• Taraku Mills has started test-run operations, while Benval Juice Factory is 95 per cent complete.
• BIPC says its workforce has grown from 121 to about 784 employees.
• The company is preparing for a potential listing on the Nigerian Exchange to strengthen its governance and investment profile.

MAIN STORY

The Benue Investment and Property Company (BIPC) says its stock valuation has increased by 216 per cent to ₦25.151 billion from ₦7.949 billion over three years, following efforts to revive inactive industrial assets and expand local production in the state.

The company’s Group Managing Director, Dr Raymond Asemakaha, disclosed this while presenting its performance report for the past three years to the press.

He said BIPC had previously depended largely on the sale of shares and properties, while several of its industrial assets remained inactive. The company subsequently adopted a production-focused strategy aimed at reviving dormant businesses, establishing factories and creating economic opportunities for residents.

Asemakaha said the valuation had increased by approximately ₦17.2 billion since the handover, attributing the growth to the state government’s industrialisation programme.

Among the projects he listed were Food Basket Brewery, Bensono Concentrate plant, Benval Juice Factory, BIPC Bakery and Water Factory, as well as the rehabilitation of Taraku Mills.

The Benval Juice Factory in Makurdi’s Industrial Layout is 95 per cent complete, while Taraku Mills has commenced test-run operations, according to the GMD.

He said the revival of Taraku Mills, which he valued at about ₦70 billion, would give farmers more opportunities to process their agricultural produce locally and create jobs.

BIPC is also developing 150 housing units under Eco City Phases One, Two and Three, while Macafa Park is being prepared for commissioning.

The company’s printing and nylon factory has started production for markets in Taraba, Lafia, Makurdi and other locations, Asemakaha added.

He also pointed to the proposed Benue State Raw Materials Value Addition and Processing Bill, which he said would require at least 30 per cent local processing. The proposed measure is expected to encourage businesses to process more raw materials within the state rather than sell them without adding value.

On corporate restructuring, Asemakaha said BIPC was conducting asset valuation, geo-fencing and geographical information system mapping through Knight Frank, an international property consultancy firm. He added that KPMG International had supported the company’s restructuring, while PKF Professional Services served as its auditor.

The GMD said BIPC was working towards listing on the Nigerian Exchange, a move intended to strengthen its corporate governance and investment profile.

The company’s workforce has also expanded from 121 employees at the time of the handover to about 784, with further recruitment expected for some industrial projects.

Asemakaha said BIPC had received an AA rating from Agusto & Co., while the Benue State Government had received a B+ rating from Fitch Ratings. He presented the ratings and ongoing industrial investments as part of efforts to improve investor confidence.

He added that expatriate personnel would work alongside local employees at the factories to support skills transfer and help sustain operations.

The GMD urged residents to patronise products made in Benue, arguing that buying locally produced goods would help retain wealth within the state and create employment.

He said the industrialisation programme was intended to establish a sustainable economic foundation for Benue beyond the current administration.

THE ISSUES

The reported increase in BIPC’s valuation suggests a significant change in the company’s asset and business position. However, a higher valuation does not automatically mean the company is generating more cash, earning profits or delivering stronger returns. Those outcomes would need to be assessed using financial results, production figures and sales performance.

The condition of the factories will be central to whether the investment translates into lasting economic benefits. Taraku Mills has begun test runs, but sustained production, demand for its output and the ability to pay operating costs will determine how much value it creates for farmers and other businesses.

The same applies to Benval Juice Factory, which is reported to be 95 per cent complete. Completion is an important milestone, but commercial success will depend on whether the plant can operate consistently, secure supplies of raw materials and find enough buyers for its products.

For farmers, local processing could create additional markets for crops and reduce the need to sell raw produce without further value being added. For consumers and businesses, more local manufacturing could increase the availability of locally made products. These benefits, however, depend on factories becoming commercially viable and maintaining production.

BIPC’s planned listing on the Nigerian Exchange could also expose the company to greater scrutiny from investors and the public. A listing would make transparent financial reporting, sound corporate governance and clear disclosure of risks increasingly important. The company has said it is working towards a listing, but the source does not establish that the process has been completed or give a date for it.

The rise in employment from 121 to about 784 workers is another reported measure of expansion. The next question is how many of these jobs are sustained by productive operations and whether planned recruitment will follow as the factories become fully operational.

WHAT’S BEING SAID

“The revival of Taraku Mills, which is valued at about ₦70 billion, would provide opportunities for farmers to process their agricultural produce and create jobs.” – Dr Raymond Asemakaha, Group Managing Director, BIPC.

“And also the proposed Benue State Raw Materials Value Addition and Processing Bill, which would require at least 30 per cent local processing, is expected to strengthen value addition in the state.” – Dr Raymond Asemakaha, Group Managing Director, BIPC.

“The fastest way to create jobs is not to import prosperity, but to produce it.” – Dr Raymond Asemakaha, Group Managing Director, BIPC.

WHAT’S NEXT

BIPC’s immediate priorities include completing the Benval Juice Factory, moving Taraku Mills from test runs into sustained operations, and preparing Macafa Park for commissioning.

The company is also working towards a Nigerian Exchange listing and continuing asset valuation and corporate restructuring. Further recruitment is expected at some industrial projects, while expatriate personnel are intended to work alongside local staff to facilitate skills transfer.

The proposed raw materials processing bill could also influence the direction of industrial investment in Benue if it advances and becomes law. Its effect will depend on the final provisions and how they are implemented.

BOTTOM LINE

BIPC says its valuation has risen to ₦25.15 billion as Benue State expands industrial activity and revives dormant assets. The lasting test will be whether the factories operate profitably, create sustainable jobs, provide dependable markets for farmers and generate enough business value to support the company beyond the current administration.

Source: NAN