By Michael Eboh
First City Monument Bank Plc (FCMB) has entered into a strategic partnership with the Ondo State Government and Olam Nigeria Limited, estimated at about N7.55 billion ($50 million) to establish agricultural plantations in the state.

According to a statement by the bank, signed by Mr. Babatunde Shofowora, Head, Corporate Communications of the bank, the partnership followed a meeting by stakeholders, Monday, December 20, 2010 at Olam Factory in Akure, which had in attendance the Executive Governor of the State, Dr. Olusegun Mimiko.

He noted that project has its main focus, the cultivation of cocoa and is expected to create about 6,000 job opportunities.

According to him, OLAM and Ondo State government are joint owners of the proposed plantation and going by the terms of the Joint Venture (JV) partnership, adding that Olam is also expected to invest significantly in the setting up of processing plant facilities.

He further stated that the partnership will ensure value creation and help develop the whole value chain of agricultural production in Ondo State.

“The Joint Venture,” according to Shofowora, “is expected to take off with approximately 10,000 hectares of cocoa plantation, which invariably will make Ondo State one of the largest producers in West Africa. West Africa currently supplies about 70 per cent of world cocoa consumption with major sources from Cote D’voire, Ghana and Nigeria..”

He added that the joint venture is expected to increase foreign exchange earnings and reduce the nation’s over_dependence on oil revenues.

“The Central Bank Governor, Mallam Lamido Sanusi Lamido had at a recent Bankers Committee’s retreat in Calabar, encouraged banks in Nigeria to focus heavily on agric sector funding in the year 2011 with hope of significantly growing the Nation’s Gross Domestic Product (GDP) in the years to come,” he said.

He quoted Ladi Balogun, the Group Managing Director, FCMB as saying, “This initiative is the bank’s response to the national strategic focus of deepening and growing the agricultural sector’s contribution to the development of the economy.”

Shofowora also quoted Mr. Mukul Mathur, Country Head, Nigeria, OLAM, as saying that the project is a demonstration of OLAM’s long term commitment and investment in Ondo State.