Zichis Agro Allied Industries Plc has secured a N2 billion non-equity capital injection from its core promoters, Chilla Entertainment Limited and Winners Investment & Trust Limited, as part of the company’s broader N50 billion growth and expansion programme.
The development was disclosed in a statement signed by the company’s Managing Director and Chief Executive Officer, Akabusi Anthonia Chinyere, and Executive Director, Finance and Strategy, Chris A. Ogbaisi.
According to the company, the funding commitment represents a major milestone in its long-term strategy to build a fully integrated agribusiness platform covering feed production, poultry farming, palm cultivation, and agro-processing.
The company said the fresh capital injection reflects the confidence of its promoters in Zichis Agro’s vision, growth potential, and long-term value creation strategy.
“Zichis Agro Allied Industries Plc, one of Nigeria’s emerging integrated agribusiness companies, has announced a strategic non-equity capital injection of N2 billion into the Company by its core promoters, Chilla Entertainment Limited and Winners Investment & Trust Limited,” the statement said.
Zichis Agro explained that the funding would be recorded as a senior long-term liability on the company’s balance sheet and could be converted into equity during a future public offer or rights issue.
“This is a senior liability to the Company which will be treated as a long-term liability in the balance sheet of the Company and redeemed at a future date through debt conversion to equity during a public offer or rights issue,” the company stated.
Funding to Accelerate Expansion
The company said the newly injected capital would be used to expand operational capacity and strengthen its working capital position as it pursues ambitious growth targets.
The latest funding follows shareholder approval at the company’s third Annual General Meeting (AGM) to raise up to N50 billion through a combination of equity and debt financing.
As part of the approved expansion strategy, shareholders authorised the issuance of 400 million ordinary shares through a special placement to finance the acquisition of a 2,000-acre agricultural estate in Ogun State valued at N5.5 billion.
The company also received approval to raise up to N5 billion through commercial papers and other debt instruments. In addition, shareholders approved an increase of N1 billion in share capital to accommodate future equity issuances.
Zichis Agro plans to use the funds to increase poultry production capacity, deepen integration across its livestock value chain, and improve operational efficiency to meet growing market demand.
Part of the capital will also support increased procurement of raw materials to boost feed mill production volumes and strengthen supply chain operations within Nigeria’s livestock and poultry industries.
Ogun Estate Development Underway
The company said it would accelerate development activities on its newly acquired 2,000-acre agricultural estate in Ogun State.
According to the statement, land-clearing operations have already commenced across the Ogbere and Ajebo axes, with the project expected to significantly expand the company’s agricultural asset base and strengthen its long-term revenue potential.
Zichis Agro noted that the latest funding aligns the interests of management, promoters, and shareholders toward building a scalable, profitable, and sustainable agribusiness enterprise.
The company is targeting monthly revenue of N540 million as it expands production capacity and broadens its agricultural footprint across key business segments.
Executive Director, Finance and Strategy, Chris Ogbaisi, revealed that the company recently upgraded its animal feed mill from an initial production capacity of two tonnes per hour to five tonnes per hour.
He said production activities are already underway following the upgrade, which is expected to enhance operational efficiency and support increased demand from customers.
The expansion programme is expected to strengthen Zichis Agro’s position within Nigeria’s agricultural value chain while supporting long-term growth, profitability, and value creation for shareholders.
