Nigerian agribusiness firm Ellah Lakes Plc has announced an ambitious plan to raise N235 billion in fresh equity capital to significantly expand its operations and strengthen its position within the country’s agro-industrial sector.
The announcement was made by the Chief Executive Officer of Ellah Lakes, Mr Chuka Mordi, during a briefing in Lagos, where he outlined the company’s comprehensive strategy for future growth. The capital raise is described by the company as a “definitive statement of intent” aimed at delivering economies of scale, market resilience, and long-term value creation for its shareholders.
“We are confident that by deploying this capital effectively and executing our clear strategy, Ellah Lakes will solidify its position as the undisputed leading indigenous agro-industrial giant in West Africa,” Mr Mordi stated.
The firm’s expansion is underpinned by its geographically diverse land bank, which spans over 30,000 hectares across multiple states, including Enugu, Edo, Ekiti, and Ondo, allowing it to capitalise on various climatic advantages for multi-crop operations.
This massive capital mobilisation is a strong signal of confidence in the Nigerian economy, particularly in the agro-industrial sector, which is crucial for reducing the nation’s reliance on oil and fostering employment. The funds will be used to execute a vertical integration strategy, most notably through the recent commissioning of its six-ton-per-hour Crude Palm Oil (CPO) mill. This vertical integration is a key component of the economic plan, creating a more robust and scalable revenue model less vulnerable to external supply chain disruptions, especially imported finished goods.
The company’s deputy managing director, Mr Paul Farrer, highlighted the strategic importance of recent acquisitions, including its full takeover of Agro-Allied Resources & Processing Nigeria Limited (ARPN). Mr Farrer explained that the ARPN acquisition, which included significant cultivated and uncultivated land, will deliver immediate scale and financial benefits.
“This acquisition marked a pivotal moment for Ellah Lakes as we strengthen our foothold in Nigeria’s agribusiness sector,” Mr Farrer said. “It will deliver operational and financial scale immediately, achieving in months what would have taken years organically, while unlocking significant long-term potential for crop diversification and vertical integration.”
Ellah Lakes is diversifying its revenue streams by combining long-term oil palm investments with medium-term cassava cultivation and more immediate revenue from its piggery operations. This approach enhances the company’s resilience against commodity price volatility and contributes significantly to food security and local content development within Nigeria’s economy. The investment is expected to create jobs and boost local agricultural output, aligning with the government’s push for increased domestic production.
