The Abia State Government has completed the acquisition of Afro Beverages Limited from the Asset Management Corporation of Nigeria (AMCON), marking a significant step in its strategy to revive dormant industries and reposition the state’s manufacturing base.
Governor Alex Otti disclosed the development during the February edition of his monthly media briefing at the Government House in Umuahia, describing the transaction as part of a broader economic recovery agenda focused on restoring production capacity, attracting private investment, and creating sustainable jobs.
According to the governor, “The State Government has completed the acquisition of Afro Beverages from Asset Management Corporation of Nigeria and begun receiving expressions of interest from prospective investors.” The statement signals a transition from asset recovery to operational restructuring, with emphasis on private sector participation rather than government management.
Afro Beverages is one of five moribund industrial assets identified by the administration for revival. The others include Star Paper Mill, Aba Textile Mills, International Equitable Associates, and Ogwe Golden Chicken. These facilities had remained inactive for years, limiting their contributions to employment, manufacturing output, and local economic growth.
The acquisition aligns with the administration’s policy of reclaiming distressed assets previously managed by AMCON and preparing them for commercial viability. Officials noted that the government’s role is primarily to stabilise the assets, resolve ownership issues, and attract competent operators capable of running them efficiently.
Otti reiterated this position, stating that investor interest is already emerging across multiple recovered facilities. “Similar investor interest is being recorded for Star Paper Mill in Owerrinta, because we prefer competent private sector operators to manage the firms sustainably,” he said.
The state government had earlier made financial commitments toward securing Afro Beverages as part of negotiations with AMCON. The acquisition follows earlier progress in reclaiming Star Paper Mill through a buyback arrangement valued at about ₦2.5 billion, reinforcing a structured approach to industrial recovery.
Economic officials argue that reviving abandoned factories offers quicker economic returns than establishing new industries from scratch. By restoring existing infrastructure, the state aims to accelerate job creation, strengthen supply chains, and stimulate small and medium scale enterprises connected to manufacturing activities.
Beyond factory revival, the administration also announced complementary initiatives designed to support industrial productivity. These include approval for an SME Village and Innovation Hub in Aba, expected to serve as a centre for technology services, entrepreneurship support, and skills development. According to the governor, “The State Government has taken a principled stand to support SMEs in the state, and that land has already been acquired for the project.”
Energy supply remains another priority linked to industrial expansion. The government revealed ongoing efforts to restore electricity in parts of the state while exploring options to improve power distribution through strategic partnerships capable of delivering stable energy to production clusters.
Analysts view the Afro Beverages acquisition as a continuation of Abia’s attempt to reposition itself as a manufacturing hub in the South East. The strategy reflects a shift toward asset recovery, private sector collaboration, and targeted infrastructure support rather than direct state ownership of enterprises.
With investor engagement already underway, the success of the initiative will depend largely on execution, governance transparency, and the ability to convert recovered assets into commercially viable operations capable of sustaining employment and long term industrial growth.
