HomeNewsState approves installation of $5.8m shea butter production facility in Kwara

State approves installation of $5.8m shea butter production facility in Kwara

The Kwara State Executive Council in Nigeria has just approved the establishment of a shea butter production facility in Kaiama by the agro-industrial firm SAO-Agro Allied Company. This was part of a move to hasten industrialization, provide more jobs for the people, and widen the state’s economic base.

According to the government, the new facility will cost a total of $5.8 million. It will be able to handle 50 tons of shea nuts annually. As a result, more than 10,000 women and young people working in the raw material sector will have employment chances.

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Remarks on the proposed shea butter production facility

“Through the use of contemporary processing techniques, the factory’s construction will improve shea production, and empower women and young people. As well as boost economic activity, draw in more investment, and transform Kwara into a more viable state. It will be sited at Kaiama and Kemanji” said Hon. Akaje, Commissioner for Business, Innovation, and Technology.

He claimed that with the shea butter production facility, Kwara will effectively meet the $30b market for shea nut products worldwide.

However, it should be noted that data from the Central Bank of Nigeria (CBN) and the olive growers association dating back to 2017 show that Nigeria produces approximately 370,000 tonnes of shea butter annually. By 2025, the Export Promotion Council (NEPC) wants to see a 40% growth in the industry’s export revenue.

Furthermore, the establishment of an industrial park at Eiyenkorin in the Kwara LGA also received approval from the state government.

At a cost of N1.2 billion, Messrs. Fab Confidential Ltd. will develop the park’s first phase. This was according to a statement issued in Ilorin after the state executive council meeting. Alhaji Abubakar Saddiq, the state’s communications commissioner, signed the document.

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