The Benue Investment and Property Company Limited (BIPC) has disclosed that the rehabilitation of the moribund Taraku Oil Mills will create 1,500 direct jobs and over 5,000 indirect jobs. The project is expected to generate N8.2 billion annual turnover at full capacity. According to Raymond Asemakaha, the BIPC Group Managing Director, the project will also save Nigeria over $2.5 million annually on edible oil imports. The mill, with a total installed capacity of 200 metric tonnes per day, is currently under test-running.
The first phase of rehabilitation is now 83% completed, with 47 highly professional staff, including 18 engineers/technicians and 29 operators, already employed. The company has introduced Low Pour Fuel Oil (LPFO) on site, reducing production cost by 40% compared to diesel. A dedicated 2-megawatt power supply is being finalised, which will cut costs by another 22%. A 5,000 KVA transformer on site already guarantees up to 16 hours of power. This move aims to cut energy costs that historically crippled the factory.
To ensure a steady supply of raw materials, over 100 trucks of soybeans are ready, with 2,847 farmers registered across 12 LGAs and three aggregation centres in Taraku, Gboko and Otukpo. The company has a combined storage capacity of 3,000MT. Benue would need about 18,000 hectares annually to sustain 100MT per day. BIPC is providing improved seeds for next season, while current water in its tanks supported by boreholes can crush over 200 trucks of soybeans.
For long-term sustainability, BIPC has signed a Technical Management Agreement with COFCO Engineering, which manufactures similar equipment. COFCO Engineering has deployed five teams of engineers to the site. The company invited Senator Iyorwuese Hagher and the public to its Open Factory Day from October 1st to 30th to witness production of its first product, Golden Oil.
The decision to rehabilitate the mill first and prove viability before any Public-Private Partnership was made after a 2024 Root Cause Analysis. The analysis showed that previous “non-debt” leases of Taraku and other assets later became public debt for the state. BIPC aims to avoid a similar situation in the future.
The company is offering Benue soybean farmers N620,000 per tonne, 18% above middlemen price. This move aims to support local farmers and ensure a steady supply of raw materials. With the mill's revival, the company expects to make a significant impact on the local economy.
The Taraku Mills revival project is expected to be completed by October/November 2026, with the first product, Golden Oil, set to hit the market. The project has the potential to boost Nigeria's economy and provide much-needed jobs.
Key points
- The project will create 6,500 jobs and generate N8.2 billion annual turnover.
- The company has signed a Technical Management Agreement with COFCO Engineering for long-term sustainability.
- The mill's revival will save Nigeria over $2.5 million annually on edible oil imports.
