Shareholders Approve Ellah LakesDebt to Equity Conversion

Kayode Tokede   

The shareholders of Ellah Lakes Plc have approved the management decision to commenced the process of converting its debt-to-equity.

The shareholders at the company’s Annual General Meeting (AGM) in Lagos also approved the change of the Company’s financial year-end from the current June-July cycle to a January-December cycle.

The company carries total liabilities of approximately N2.7 billion, including a N940 million loan from the Central Bank of Nigeria (CBN) through FCMB, which has been reduced to N658 million. Beyond this amount, the remaining liabilities of Ellah Lakes are slated for conversion into equity.

Speaking to shareholders at the AGM, the Chairman, Ellah Lakes, Mr. Joe Attueyi stated that the company believed in turning challenges into opportunities and determined to thrive amidst these challenges.

“Our growth plan is focused on quickly becoming one of the top five oil palm producers and processors in Nigeria. We are taking a proactive step to innovate and diversify our business.

“Particularly, we are excited about our diversification into livestock piggery. We aim to begin generating revenue from this venture by year-end, with plans to breed over 5000 pigs and produce 500 tons a year of pork to SW and SS sub-region,” Attueyi said.

On going forward, he stated that the management is committed to innovating its farm structures and scale operations to meet the growing demands of the agricultural sector.

“The path forward may be fraught with challenges, but we believe in the resilience of our company and the potential for growth within Nigeria’s agricultural landscape,” he added. 

While speaking to journalists, the managing director, Ellah Lakes, Chuka Mordi disclosed that the company is targeting to start palm oil production in the first half of 2025, stressing that palm kernel oil production in the future as it looks to consolidate its revenue base.

 “We start oil milling between Q1 and Q2 in 2025. The mill is almost fully installed and the commissioning should be by January-February and then production commences.

“We’ll be selling the kernels for a while. Then we’ll be producing palm kernel oil because we intend to acquire a palm kernel mill.”

The commencement of the oil milling business is expected to shore up the company’s revenue, after two years of skeletal operations with no revenue generated in one of those years.

Mordi added that the company’s piggery operations are already generating revenue, with a current stock of approximately 500 pigs and a plan underway to scale up the business.

Since its acquisition of Telluria Farms, a 2,400-hectare oil palm plantation in Edo State in 2019, Ellah Lakes has transformed its operations to focus on oil production. However, the three-ton mill, which was paid for in 2022, is yet to commence operations.

Mordi acknowledged a delay in the commencement of the company’s farm operations in Ondo State. He highlighted that certain clauses in the contract with the Ondo State government have been adjusted, hence the delay.

The company had previously secured a lease for 5,000 hectares from the Ondo State Government for the cultivation of maize, cassava, and soybeans.