The Abia State government has decided to initiate fresh bids for the management of its four farm estates. The government had revoked the contracts of the former investors reportedly in public interest, and alleging that they failed to fulfill their contractual obligations. The government also said that the terms of their contract were against the state’s interest.
The affected farm estates deal in cocoa, cashew, oil palm and rubber.
The affected contractors include; Providence Resources Ltd. in charge of Abia Cocoa Farm Estate, Agbozu; Manglore Farms Ltd. for Abia Cashew Estate, Umunneochi. Others are South Estate Farm and Agro Investment Processing Company – Ukwa Nkporo Oil Palm Estate; and Great Nobles Integrated Ltd., which manages Ameke and Ndi Oji Abam Rubber Plantations. The commissioner for agriculture, Dr. Cliff Agbaeze, who made the announcement on behalf of the State government, said that “a fresh open bidding process will be initiated shortly to bring in more credible investors into those farm estates under favourable terms and conditions”.
Stating that the revocation was with immediate effect, Dr. Agbaeze, announced in a press statement saying that “the directive takes effect from 1st January 2025”. He said that all the affected investors should “discontinue every activity in all the affected farms forthwith.” Agbaeze explained that the government took the decision “following a careful review of the existing contracts on the state’s farm estates across the zones”.
According to him, it has become obvious that the contracts “were entered into under terms and conditions that are detrimental to the state and her interests.
“It has further been observed that even the stated terms and conditions of these contracts have been substantially and serially breached by the so-called investors.”
The Commissioner justified the contract revocations, insisting that “it would be irresponsible of this government to allow these breaches to neither continue nor further subject the state to such clearly compromised conditions”. He added that “This administration has a sacred duty to preserve the state’s resources for the greater good of all Abians in its quest to restore the state to its lost glory.”
Agbaeze stated that the fresh contract terms would “not only be transparent but also best protect the interests of the state and her people and align with international best practices”.
