On Tuesday, Dr. Raymond Asemakaha, the Managing Director and Chief Executive Officer (MD/CEO) of Benue Investment and Property Company Limited (BIPC), disclosed that beer consumption by residents of Benue State amounts to N870 million monthly. Dr. Asemakaha noted that profits from these sales were leaving the state, prompting the government to plan beer production to keep the revenue within Benue.
Dr. Asemakaha revealed this information to reporters following an inspection of the brewery, water, and bakery facilities situated at KM16 Akile, Gboko Road, and George Akume Road in Makurdi. He mentioned that the beer’s name would be announced during its launch in December 2024.
He explained that the decision to establish the new beer factory stemmed from research conducted by BIPC, indicating significant monthly outflows of money from the state due to beer consumption, especially after the previous government’s brewery became defunct.
“Asemakaha said the company was out to give Benue and Nigerians a high-premium quality beer made in the state using local raw materials. We will not go into competition with any brewery company. Therefore, we will do everything for the people to enjoy a beer with a difference.
“Basically, when we came on board, we understand that the rate of alcohol consumption in the state is between N850 to N870 million per month. We understand that the people that are selling these beers have taken this money out of Benue State.
“So, we said no, all what we need to do is to float a new company so that we will be able to observe and retain the cash flow within the system. That is why we are embarking on this beer production.
“This N850 to N870 million is a monthly sale of beers in the state, and within the month of December, they have made one billion naira in sales. So, one of the things we are doing is to help retain the cash flow within the system.
“The expected production capacity is 180,000 bottles per day, because the fermentation period is 15 days. We will crash the price of beer in the state, but we are not going to compete with them (other breweries). We want to retain the cash within us. It is our own thing. So, the people here, our brothers and sisters, should be able to key in and take our products.
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“The brewery project would cost between ₦700 and ₦800 million and we will raise it through capital funding from Benue sons and daughters. The raw materials will also be sourced locally and we will commence full production by the first week of December.
“What we want to do is that this season, we want to give people seedlings so that we can go back to production and take those products from them to plant and harvest.”
Dr. Asemakaha explained the it would cost his company about N800million to set up the brewery saying the 23 Local Government Areas, LGAs, of the state would be encouraged to own 23 percent of the shares while Benue indigenes would be advised to acquire shares in the factory “because we want our people to own the business.”
“We will raise capital out there and do this job so that you can have a share. I can also have a share and other people too so that we can control the business. We have 23 LGAs in the state and each one of them will take one percent share and the remaining ones will be giving to individual Benue citizens to subscribe”, Dr. Asemakaha stated
Regarding the water factory and bakery, the Managing Director confirmed that both establishments, situated at Tse Ayu along George Akume Way, would require N220 million to complete. He assured that they would be finished and inaugurated by May 27, 2024.
Mrs. Theresa Abeda, the Departmental Head of Business Development and Strategy at BIPC, expressed confidence in the company’s investments, highlighting the expertise and business acumen of its leadership, which has been instrumental in its transformation.
Jerry Iorsun, the Department Head of Real Estate and Infrastructure, pledged that all ongoing projects undertaken by the company adhered to the highest construction standards, ensuring top-quality results.
