Value Proposition

In order to address the infrastructure challenges and improve the quality of life in their areas, Low-Income Urban communities in Developing countries like Nigeria have adopted the Community-based Approach in Infrastructure Provision, Employment and Income Generation.

Organisations like Community Development Unions (CDUs), The Age Grades, Youth Organisation and Women Organisation and Individuals initiate the projects by identifying the needs of the community. Internally generated funds like membership registration fees, dues, fines, levies and voluntary donations etc are relied upon to finance the projects.

In a study conducted in 2011 by Steve Otonye Tamuno and Williams Okwara Iroh in 10 communities in Ohafia Local Government Area, 164 of such projects were undertaken (I53 projects were solely executed by the communities and 11 projects were jointly initiated and executed by the communities and the Abia State Agency for Community and Rural Development Project (Abia-CSDP)).

The 10 communities that were randomly chosen are as follows:-

1)                Amaekpu
2)                Elu
3)                Ebem
4)                Asaga
5)                Amuke
6)                Akanu
7)                Amuma
8)                Amangwu
9)                Okon
10)           Ndi Ibe

The projects identified, as shown in Table 1, are:

• Primary Schools – 12
• Secondary Schools – 10
• Health/Maternity Centres – 7
• Cottage Hospitals – 9
• Markets – 6
• Motor Parks – 3
• Town Halls – 41
• Civic Centres – 7
• Feeder Roads – 6
• Bridge/Culverts – 26
• Street Lights – 4
• Toilets (Public) – 9
• Rural Water Supply – 16
• Tower Clock – 1
• Other Lock Up Shops – 1
• Rural Electrification – 3
• Palm Plantation – 1
• Palm Oil Processing Mill  – 1
• Computer & Equipment Centre – 1

Unfortunately, Nkwebi was not one of the communities chosen for the study conducted.

The benefits of the proposed oil mill to the shareholders, community, the state and the country as a whole are as follows:

1)           Provision of employment opportunities for the catchment areas (Nkwebi Ohafia L. G. A.), Abia State and Nigeria in general as the Company will employ people (directly and indirectly).  This will result in a decrease in the unemployment in Nkwebi, its environs and Nigeria as a whole.

2)           This will translate to wealth to Abia State indigenes and increase the country’s Gross Domestic Product (GDP).

3)           Bring development and industrialization to the area and its environs.

4)           Have a multiplier effect on Abia State’s economy and Nigeria as a whole in all fronts.

5)           Generate revenue for the Local, State and Federal Government.

6)           Ancillary and complementary services such as transport, markets, restaurant etc., will be established within the vicinity of the proposed Oil Mill.

7)           High Return on Equity and Capital Employed.
 
 
COMPETITIVE ADVANTAGE
1)                Vertical Integration – Plantations are owned by promoters.
2)                Relatively low cost of operations.
3)                Relatively good roads.
4)                Goodwill with the Local Community.
5)                Untapped Market – Supply cannot satisfy the Demand of the domestic market as indicated below.

  
Table 2 – Estimated Domestic production for Palm Oil, Palm Kernel Cake, Palm Kernel Oil, Olein, Stearin and Refined Vegetable Oil is given as follows {Sources: Independent Survey, Nigerian Institute for Oil Palm Research (NFOR), and Manufacturers Association of Nigeria (MAN) (Sources: Interpolation between demand and supply analyses)}: