From left: Salisu Zakari Ningi, Deputy Chairman; Adekunle O. Onafowokan, MD, Ladgroup Ltd; Sir Jones Chukwudi Onyereri, Chairman, House Committee on Banking and Currency; Prince (Dr) B. A. Onafowokan, Chairman, Ladgroup Ltd; and Mr. Bashir M. Wali, Acting MD/CEO, NEXIM Bank at the LADGROUP Shea Butter processing factory in Ikenne, Ogun State during the House Oversight Function visit on Thursday, February 23, 2017.

Prince B. A. Onafowokan, Managing Director of Ladgroup Limited, the largest Shea Nut processing factory in Africa, on Thursday, said the company hopes to earn US$5million in the first year, and US$100million in the next five years.
Within the period, he told visiting members of House of Representatives’ Committee on Banking & Currency, led by its Chairman, Jones Chukwudi Onyereri on ‘Oversight Functions’ to assess the impact of the sum of $5,786,163.00 granted by the Nigeria Export Import Bank (NEXIM), that the company will create at least 300 direct jobs and more than 600 indirect jobs over the period.
The facility to set up a Shea nut processing factory in Ikenne, Ogun State, was made up of Equipment Finance of $2,786,163.00 and Working Capital Facility of $3,000,000.00, which has enabled it purchase and install a Shea Butter Refining Unit, a step down transformer and augment its working capital base.
Speaking at the function, Acting Chief Executive of NEXIM, Bashir Wali said the facility was approved in March 2015, noting that “…the interest of NEXIM Bank in Shea Nut processing for export, was borne out of the very high demand for Shea Butter with the impressive potentials for foreign exchange revenue stream as well as massive job creation at various levels of its value chain.”
According to a statement, by NEXIM management at the weekend, Wali cited available statistics showing that nearly two billion Shea trees grow naturally on parklands in 21 African countries stretching from Senegal to South Sudan with over 16,000,000 women living in rural communities individually collecting the fresh fruits and the kernel which they process to extract a healthy vegetable oil known as “Shea Butter.”
With approximately 600,000 tons collected each year, the industry provides a critical source of jobs and incomes to millions of often poor and underserved communities.
Fielding questions on the viability of the project, Wali said the global demand for Shea Butter is worth about $10billion, which is projected to increase to over $30billion by 2020.
This, he continued, is why NEXIM is interested in providing funding for increased proactive measures to reposition agricultural products such as Shea as part of its non-oil export sector interventions in the agro-processing sub-sector.
It is estimated, he further told the visiting lawmakers, that over 680,000 metric tons of Shea Nuts are produced annually in West Africa, with about 56% of the Nuts exported, while the remaining is consumed locally. Available data shows that Nigeria is the world largest producer of Shea with the wildly grown Shea trees predominant in 21 states across the country.
This accounts for over 53% (or 370,000 MT) of the production in West Africa as confirmed by the reports of the Central Bank of Nigeria (CBN) and Oil Seeds Association of Nigeria (OSAN). Sadly, nearly N345 million is lost in the smuggling of Shea products out of the country every year.
The factory is dedicated to sourcing of Shea Nuts and processing them into Shea butter of the highest quality, for sale to both domestic and export markets, but with a special bias for the export market. The firm has set its target on major European importing companies in the Confectionary/ Chocolate industry and Cosmetics/Pharmaceutical industry based in Netherlands, Denmark, Sweden and the UK that import well over 95,000 MT annually.
Also speaking on the intervention, Dr. Onafowokan expressed appreciation to NEXIM Bank for the quality of loan given to the company, he pleaded that more of such activities is required to curtail misapplication of such funds provided by the government to assist local entrepreneurs keen on manufacturing for export.
“…Ladgroup’s relationship with NEXIM Bank has been very cordial from the onset; and the level of professionalism displayed by the bank and its staff in disbursing the loan underscores its commitment to contributing to government’s effort in diversifying the revenue base, especially through promotion of export-oriented investments in the non-oil sectors,” he stressed.
He added that in addition to its traditional uses such as cosmetics, soap, moisturizer, oil, wax, ointments and candles, Shea Butter is commonly used in the production of Cocoa Butter equivalents or improvers; and up to 5% content by weight is allowed under EU regulations in chocolate, other confectionaries and margarine, creating even larger international markets for Shea products.
Commending NEXIM Bank for its relentless contribution to the Nigerian non-oil export sector, especially in funding factories such as Ladgroup Limited, Sir Onyereri noted: “…the current economic recession facing the country has opened our eyes to the immense opportunities and abundant blessings God has heaped on Nigeria, not just in oil and gas, but more especially in agriculture and solid minerals….”
He called on the Federal Government to increase funding support to institutions like NEXIM Bank, promising that the Committee, which he is the Chairman, would continue doing all within its power to ensure that such funds are applied very judiciously.
Besides the Ladgroup Limited, NEXIM Bank has also provided working capital for Shea Butter processing to Karite Oil Limited (formerly Fagow Oil & Gas Nigeria Limited) in Akure, Ondo State. The Company has a 20-22MT Shea Butter processing plant.