Lagos, Nigeria (VOICE OF NAIJA)- Zichis Agro Allied Industries Plc has secured a N2 billion non-equity capital injection from its core promoters, Chilla Entertainment Limited and Winners Investment & Trust Limited, in a move aimed at accelerating the company’s ambitious N50 billion growth and expansion programme.
The funding was disclosed in a statement jointly signed by the company’s Managing Director/Chief Executive Officer, Akabusi Anthonia Chinyere, and Executive Director, Finance and Strategy, Chris A. Ogbaisi.
According to the company, the capital infusion represents a major milestone in its long-term vision of building a fully integrated agribusiness enterprise with interests spanning animal feed production, poultry farming, palm cultivation, and agro-processing.
The company said the investment reflects the confidence of its promoters in Zichis Agro’s growth prospects and value creation strategy.
“Zichis Agro Allied Industries Plc, one of Nigeria’s emerging integrated agribusiness companies, has received a strategic non-equity capital injection of N2 billion from its core promoters, Chilla Entertainment Limited and Winners Investment & Trust Limited,” the statement noted.
The company explained that the funding will be recognised as a senior long-term liability on its balance sheet and may subsequently be converted into equity through a future public offer or rights issue.
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“This is a senior liability to the company and will be treated as a long-term liability in the balance sheet. It will be redeemed at a future date through debt conversion to equity during a public offer or rights issue,” the company stated.
Zichis Agro said the fresh capital will be deployed to strengthen its working capital base, expand operational capacity, and support key strategic projects across its agricultural value chain.
The latest funding follows approvals granted by shareholders at the company’s third Annual General Meeting (AGM), where management received authorisation to raise up to N50 billion through a mix of debt and equity financing to fund future expansion.
As part of the programme, shareholders approved the issuance of 400 million ordinary shares through a special placement to finance the acquisition of 2,000 acres of agricultural land in Ogun State valued at N5.5 billion.
The company also secured approval to raise up to N5 billion through commercial papers and other debt instruments, while increasing its share capital by N1 billion to accommodate future equity issuances.
Zichis Agro plans to use the funds to scale up poultry production, deepen vertical integration across its livestock operations, and enhance efficiency in response to rising demand within Nigeria’s agricultural sector.
A portion of the capital will also be channelled towards increased procurement of raw materials to boost feed mill output and strengthen supply chain operations serving the livestock and poultry industries.
In addition, the company is accelerating the development of its newly acquired 2,000-acre agricultural estate in Ogun State. Land-clearing activities have already commenced across the Ogbere and Ajebo axes, with the project expected to significantly expand the company’s agricultural asset base and long-term revenue-generating capacity.
The company noted that the funding aligns the interests of management, promoters, and shareholders as it pursues its objective of building a scalable, sustainable, and profitable agribusiness platform.
As part of its growth projections, Zichis Agro is targeting monthly revenue of N540 million through expanded production capacity and a larger agricultural footprint.
Speaking on the company’s operational progress, Executive Director, Finance and Strategy, Chris Ogbaisi, revealed that Zichis Agro recently upgraded its animal feed mill from a production capacity of two tonnes per hour to five tonnes per hour, with the expanded facility already in operation.
The company believes the investment and ongoing expansion initiatives will strengthen its position within Nigeria’s agricultural value chain while delivering sustainable long-term growth and enhanced shareholder value.
