The Abia state government has fully recovered the Star Paper Mills Aba and Owerrinta from the Asset Management Corporation of Nigeria (AMCON)marking a major step towards industrial revival in the state.
The government has also intensified effort to complete the acquisition Afro Beverages Limited Owerrinta.
The Star Paper Mills, a brainchild of the Late Abia -born entrepreneur Chief Nnanna Kalu ,was established in the 1970s as an integrated paper -conversion and paper -products manufacturing enterprise to serve domestic markets.
Speaking during the handover ceremony held at the Banquet Hall government House Umuahia,the Governor Dr Alex Otti said that the recovery of the asset is in line with his campaign manifesto of bringing to life all moribund Industries including Star paper Mills, the Aba Metheological Complex ,Ogwe Golden Chicken,Aba Textiles Mill, International Glass Industry among others.
The Governor who said his administration would revive the moribund Star Paper Mill, promised that the industry when fully revived would create between three thousand and five thousand jobs in addition to attracting private sector participation.
” Before closure, Star Paper Mill employed over 1,000 people directly and more than 5,000 indirectly. “Reviving it will create between 3,000 and 5,000 jobs. That, for me, is the ultimate goal—jobs, jobs, and more jobs,” Governor Otti said.
He noted that the Star Paper mill had previously been sold under questionable circumstances, with parts of the agreement breached, noting that it took his intervention with the cooperation of AMCON to recover the asset in addition to refunding the payment made by the company that bought the mill.
The governor also disclosed that payment for Afro Beverages , another industrial facility under AMCON, was still ongoing but would be completed in the coming weeks, adding that prospective investors were already on ground to partner in reviving the company.
Governor Otti explained that his government’s role was to de-risk the investment and attract capable private sector operators and challenged the UCCIMA and ACCIMA to rise up to the challenge.
” Government’s role is to de-risk the investment and attract capable private sector operators. “Our intention is not to run Star Paper Mills. We are acquiring to give it to the private sector. Leadership is key; without it, even resources fail,” he added.
The state Chief Executive expressed gratitude to AMCON for its cooperation and assured that the government would ensure Star Paper Mill becomes profitable, produces goods, and creates employment.
Earlier in his address, the Commissioner for Industries and SMEs, Mazi Mike Akpara described the handover as the return of life to our industries and a major step in Abia’s industrial resurgence, announcing that the State Government had fully concluded the acquisition of Star Paper Mills Ltd in Aba and Owerrinta with a two point five billion naira payment, while an initial five hundred million naira deposit has been made for Afro Beverages Limited.
He added that a structured ₦500 million bimonthly repayment plan had been put in place to clear the remaining ₦3 billion for Afro Beverages within the 2026 fiscal year.
According to him, the State is already deepening engagements toward reactivating other moribund assets, including International Equitable Industries, KAN Biscuits, and the completion of the Enyimba Hotel as a five-star facility.
In his remarks, The Executive Director,(Assets Management), AMCON Dr Aminu Mukhtar while commending the state government for its commitment to recovering the industry,noted that the industry, which had fallen into disuse due to financial distress, represents more than an asset, describing it as an icon woven into the history of Abia State and Nigeria.
“AMCON does not take over assets to destroy them, but to preserve their value.”Today, we are proud to transfer this preserved industrial giant to a government committed to revitalisation,”
“The acquisition of this asset is a milestone for the state’s industrial development”Dr Mukhtar noted”.
He recalled using products from the factory, including exercise books, during his youth and expressed satisfaction that the facility would now be revitalised under state leadership,
Dr Danamu also said that the factory would strengthen the local supply chain, boost household incomes, improve the state’s Gross Domestic Product, and encourage ancillary businesses across Abia,
Ferdinand Ekeoma
December 13, 2025.
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