A strategic non-equity capital of N2 billion has been pumped into one of Nigeria’s emerging integrated agribusiness companies, Zichis Agro Allied Industries Plc.
Chilla Entertainment is one of the promoters of Zichis. The capital injection reaffirms the investor’s confidence in the company’s vision, growth prospects, and long-term value creation strategy.
In a note to the Nigerian Exchange (NGX) Limited, the funds will be a long-term liability in the company’s balance sheet to be redeemed at a future date in terms of debt conversion to equity during a public offer or rights issues.
It is designed to transform Zichis into one of Nigeria’s leading agro-industrial enterprises with a fully integrated value chain spanning feed production, poultry farming, palm cultivation, and agro-processing.
The newly injected capital will primarily be deployed towards expanding the firm’s operational capacity and strengthening its working capital position.
Key areas of investment include a significant increase in poultry production capacity, strengthening of the company’s integrated livestock value chain, and enhancement of operational efficiency and output levels.
In addition, the N2 billion would be used to increase the procurement of raw materials to support higher production volumes, grow the supply chain for the organisation’s feed mill operations, and position the business to meet growing demand within Nigeria’s livestock and poultry sectors.
Also, Zichis will accelerate the cultivation of its newly acquired 2,000-acre agricultural land in Ogun State to significantly increase its agricultural asset base and future revenue-generating capacity.
Zichis is strategically positioning itself to capitalise on these opportunities through its diversified agribusiness model, expanding production footprint, and disciplined execution strategy.
The endgame is to enhance shareholder value, expand operational capacity, build sustainable competitive advantages, and deliver long-term returns to investors.
Recently, the board and management visited the Nigerian Institute for Oil Palm Research (NIFOR) in Edo State for a strategic partnership on the acquisition of high-yield oil palm seedlings and the implementation of modern cultivation techniques across its expanding palm estate.
This collaboration is expected to enhance productivity, improve long-term yields, and support the company’s objective of becoming a major participant in Nigeria’s growing palm oil value chain.
Zichis reaffirmed its commitment to maintaining the highest standards of corporate governance, transparency, accountability, and regulatory compliance.