The Enugu State Government has signed two key Memoranda of Understanding (MoUs) to drive the state’s economic growth, targeting $30 billion within the next six years.
The agreements were signed with Fungtai Engineering Ltd to boost cash crop production and with the National Cashew Association of Nigeria (NCAN) to establish a domestic export warehouse, further enhancing the state’s agricultural and export capacities.
However, the state has mapped out a total of 7,221 hectares of agricultural land at Ugwujoro, Nimbo, in the Uzo-Uwani Council Area, aligning with Gov. Peter Mbah’s vision to enhance agriculture, drive agro-industrialization, improve security, and create employment.
Agricultural sector as a key driver of GDP growth
Speaking at the MoU signing ceremonies at Government House, Enugu, on Thursday, Mbah described agriculture as a key sector enabling Gross Domestic Product growth in his administration’s effort to grow the state’s economy to $30 billion within the next six years.
Mbah, represented by the Secretary to the State Government, Prof. Chidiebere Onyia, explained that the state has decided to utilize over 7,000 hectares of land at Ugwujoro, Nimbo, an area bordering Enugu and Kogi that had previously faced security challenges.
“We expect a significant portion of our GDP growth to come from agriculture; hence, we are focused on agriculture and agro-industrialisation,” he stated.
“As you may know, Ugwujoro Nimbo is a border area and has been a source of security concerns. In addition to using technology to secure the state, this large-scale agricultural initiative will effectively occupy the land, leaving no space for criminals to hide or launch attacks.”
He emphasized that the government is committed to ensuring the success of the initiative, noting that it is a win-win situation for both the state and investors.
Fungtai Engineering’s commitment to Enugu’s agricultural vision
Also speaking at the event, Chief Isaac Chuks, the Managing Director of Fungtai Engineering Limited, expressed the firm’s eagerness to launch the project, describing Enugu State under the Mbah administration as an investor’s haven.
“We will make the government and people of Enugu State proud for believing in us. We are pleased that the state is prioritizing agriculture and de-risking investments. Just wait and see,” he assured.
NCAN partnership to revolutionize cashew production and processing
Additionally, Governor Mbah, who also signed the MoU with the National Cashew Association of Nigeria (NCAN), highlighted the establishment of a pre-fabricated domestic export warehouse at the Enugu State Polytechnic, Iwollo, as a strategic move with wide-reaching benefits for both the state and the nation.
“We recognize the immense economic potential of the cashew industry, valued at over $7 billion in the global market. Therefore, the government has deemed it necessary to engage in this value-adding relationship,” he said.
“This collaboration will ensure that cashew production is processed locally, enhancing our GDP and creating significant job opportunities. With over six council areas suited for cashew production, we are poised for a transformative journey.”
- In response, Dr. Ojo Ajanaku, the National President of NCAN, assured Mbah of reliable and timely delivery, stating that the growing relationship between the state government and the association would optimize the state’s cashew potential.
- He also expressed interest in helping to revitalize the moribund Premier Cashew Industry Limited at Akama Oghe.
Ajanaku emphasized the importance of establishing the Domestic Export Warehouse to aggregate farmers’ produce, encourage more farmers to cultivate, and increase production.
