Breaking News
Translate

A-Ibom fertilizer blending factory spends N1.4m on diesel monthly —MD

Kindly Share This Story:

A-Ibom fertilizer blending factory spends N1.4m on diesel monthly —MD

By Chioma Onuegbu – Uyo

Managing Director, Greenwell Technologies, Fertilizer blending factory located in Abak local government area of Akwa Ibom state, Mr. Johnny Udo has disclosed that he spends N1.4 million monthly on diesel to keep the company running.

Udo who disclosed this yesterday when members of Correspondents’ Chapel of the Nigeria Union of Journalist, NUJ, Akwa Ibom State Council, went on facility tour to the factory as part of activities marking the chapel’s press week, identified lack of electricity as a major challenge the company faces.

READ ALSO: ‘Cost of diesel expected to rise and many businesses are not prepared’ – Concept Nova CEO

He explained that he had even promised to pay half a million naira monthly to the PHED company for them to supply constant electricity to his company but to no avail, adding that he decided to situate the company in Abak because the area is peaceful.

“I spend about N1.4million a month on diesel. If I am lucky, I have light for five minutes or two minutes for the whole week. So we depend on diesel. We have a 500KVA generator because if we don’t have light we cannot operate these machines.

“When I first decided to do this business my first concern was commitment. We turn out about 300 metric tonnes a day, sometimes 200 depending on the need and availability of raw materials. Two of our raw materials are imported and the rest are purchased locally.

READ ALSO: Navy arrests 12, seizes 50 gallons of diesel in A’Ibom

“Most of the products have been sold out. Last month we shipped 4,000metric tonnes to Nassarawa and some other States. We still have about 59 trucks that will go to Rivers state whenever they are ready to pick.” He said.

The Managing Director said the company has been making progress following high demands/patronage for the product from many states across the country, adding that the company has also started blending fertilizer for coconut farms.

He explained that the Federal government subsidizes 50 percent of the cost of the fertilizer as a way of assisting farmers.

“The actual manufacturing price is N11,000 per bag but the Federal government in order to get the farmers to use it pay 50 per cent, then the farmers pay 50percent of the price. In some states, they give to farmers free.

“You can buy it for N6,000, 00, or N7,000.00 in the market because the raw materials are very expensive. And we don’t sell less than one truckload to the agro-dealers; right now we are selling to individuals, but by next year we will not. If someone wants to buy one bag we’ll sell but from next year we are not going to do that.

“The demand is high, and right now we have about 1000metric tonnes remaining, and the federal government has paid for all, but we are also producing for a private entity. We are also shipping to Coconut farmers right now, we are blending fertilizers for them.

“When we started most of our customers were from the north, but we have started having customers from Akwa Ibom, Abia, Imo. We are the only fertilizer blender in the South-South of the country.” He explained.

In her brief remarks, Chairman of the chapel, Mrs. Idongesit Ashameri who led the members on the facility tour, emphasized the need for the company to partner media practitioners to promote what it is doing.

vanguard

Kindly Share This Story:
All rights reserved. This material and any other digital content on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from VANGUARD NEWS.

Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.
Do NOT follow this link or you will be banned from the site!