Enugu State Government Seals N100 Billion Deal to Revitalize United Palm Products Ltd.

Pragmatic Palms Ltd. Enters Partnership to Transform Former Okpara Initiative into Agro-Industrial Powerhouse


Enugu State’s economic landscape is set for a significant transformation following the sealing of a landmark N100 billion deal aimed at revitalizing the long-dormant United Palm Products Ltd. (UPPL). Spearheaded by Governor Peter Mbah’s administration, the agreement between the Enugu State Government and Pragmatic Palms Ltd., a subsidiary of Diamond Stripes Ltd., marks a pivotal moment in the state’s journey towards agricultural and agro-industrial development.

The UPPL, originally established as one of the initiatives of the late Dr. Michael Okpara, former Premier of the defunct Eastern Region, had remained inactive for decades, symbolizing the untapped potential of the region’s agricultural sector. Governor Peter Mbah’s commitment to leveraging dormant assets for economic growth formed the cornerstone of his campaign promises, with UPPL identified as a prime candidate for revitalization.

Under the terms of the N100 billion deal, Pragmatic Palms Ltd., functioning as a Special Purpose Vehicle (SPV), will finance the rejuvenation of UPPL. While the Enugu State Government will contribute the plantations as 40% equity, Pragmatic Palms Ltd. will provide financing for 60% of the transaction value, exemplifying a synergy between public and private sectors towards sustainable development.

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Incorporating Pragmatic Palms Ltd. as an SPV was deemed necessary to facilitate the complex transaction involving multiple stakeholders. This approach aligns with international best practices and ensures a robust framework for executing the revitalization project.

To safeguard Enugu State’s interests, stringent measures have been implemented, including securing a corporate guarantor in the form of Diamond Stripes Ltd. Furthermore, performance targets and timelines have been established, with provisions for the government to revoke the deal if Pragmatic Palms Ltd. fails to meet its obligations.

The appointment of George Nwangwu, a seasoned expert in project financing law and the Managing Director of Pragmatic Palms Ltd., underscores the commitment to professionalism and expertise in driving the project forward. With a distinguished track record in facilitating multi-billion-dollar transactions across Africa, including infrastructure projects and public-private partnerships, Prof. Nwangwu brings a wealth of experience to the table.

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As the UPPL revitalization project gains momentum, Enugu State stands poised to unlock its agricultural potential, catalyzing economic growth and prosperity for its citizens. The partnership between the government and private sector entities signals a paradigm shift towards sustainable development and underscores the state’s unwavering commitment to harnessing its resources for the benefit of all stakeholders.

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This Post: Enugu State Government Seals N100 Billion Deal to Revitalize United Palm Products Ltd. was approved and published by Ancity Media Editor and may not be republished elsewhere without prior written permission from the Editor.

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