Flour Mills to establish edible oil extraction plant in Nigeria

Flour Mills of Nigeria has announced plans to invest N7bn ($43.2m) to open an edible oil extraction plant and refining facility in Ibadan, Nigeria, as a part of the second phase of its N20bn ($123.5m) expansion programme.

The new plant will more than double the company’s existing oil extraction capacity to 500mt of soya bean and 300mt of palm kernel per day.

The extracted crude oils will be refined at a 400mt per day multi-oil refinery, which the company plans to build after purchasing a new site.

According to the company, the new facilities will also provide raw materials for its animal feed milling.

The first phase of the programme involved the expansion of Flour Mills’ edible soybean cultivation in Kaboji and the acquisition of an existing oil extraction and refining business in Ibadan.

The third phase will include the setting up of palm plantations to boost the company’s raw material supplies, and a multi-oil refinery and margarine packaging plant at Agbara Industrial Estate, Lagos State, which will have a capacity of 750mt per day.

Flour Mills agro-industrial division head Paul Gbededo said the company is committed to long-term sustainable agro-industrial development in Nigeria, and these large-scale agricultural projects have been providing direct employment, economic empowerment and stimulation in the project areas.

Last month, the company announced that it will be commissioning its new flour mill and sugar refinery this year, considerably increasing the company’s production output.

Flour Mills is involved in span flour milling, pasta manufacturing, port operations, fertiliser blending, cement trading and manufacturing, bags and other packaging materials manufacturing, and agricultural business activities in Nigeria.