Flour Mills to establish edible oil extraction facility in Nigeria

Nigeria-based Flour Mills plans to invest NGN7bn ($43.22m) to establish an edible oil extraction plant and a refining facility in Ibadan, Nigeria, as a part of its NGN20bn ($123.49m) three-stage programme.

The new facility will more than double the company's existing oil extraction capacity to 500 metric tonnes of Soya per day and 300 metric tonnes of palm kernel per day.

The extracted crude oils will be refined at a 400 metric tonnes per day multi-oil refinery, which the company plans to build after purchasing a new site.

According to the company, the new facilities will expand the company's existing edible oil capacity, provide raw materials for its animal feed milling, and create synergy for the group.

The first phase involved the expansion of Flour Mills' soybean cultivation in Kaboji and the acquisition of an existing oil extraction and refining business in Ibadan.

The third phase will include setting up of palm plantations to boost the company's raw material supplies, and the establishing of a multi oil refinery and margarine packaging plant at Agbara Industrial Estate, Lagos State, which will have a capacity of 750 metric tonnes per day.

Flour Mills agro-industrial division head Paul Gbededo said the company is committed to long-term sustainable agro-industrial development in Nigeria, and these large-scale agricultural projects have been providing direct employment, economic empowerment and stimulation in the project areas.

Last year, Flour Mills announced its plans to invest NGN200bn ($1.27bn) to expand its presence in the food market, and to issue shares of the company to further its investments in food and agro allied, cement and to strengthen its working capital.

Flour Mills is involved in span flour milling, pasta manufacturing, port operations, fertiliser blending, cement trading and manufacturing, bags and other packaging materials manufacturing, and agricultural business activities in Nigeria.