Chuka Mordi, the Chief Executive Officer of Ellah Lakes Plc, has provided some clarifications on the company’s inability to generate significant revenue for some years.
He highlighted during the company’s extraordinary general meeting that, after joining the company in 2019, it had to recapitalise and rebuild its operations.
“When we assumed control, the company was insolvent. We had to recapitalise to stay afloat… Over the past three years, the company has injected several billion naira into rebuilding operations, with every naira going toward capital investments such as milling facilities and competitive production infrastructure.”
He broke down some of the capital expenditures over the past four years: clearing 1,000 hectares of land at N1 billion, acquiring 15,000 seedlings at N40 million, and spending N200 million to plant 500 hectares.
“We sourced seedlings from industry leaders like Presco, and we made our first revenue in Q1 this year.” During the quarter ending April 2025, Ellah Lakes generated N68.7 million in revenue.
“Despite all that has been spent, we recorded no revenue for four years. Everything from operational expenses to planting was funded by internal loans,” he said. “It’s important that stakeholders recognise the sacrifice that’s gone into bringing this company back to life.”
Read Also: Ellah Lakes eyes palm oil production in 2025 – Businessday NG
During the EGM, the company’s shareholders approved the board’s plan to raise N250 billion through equity issuance. The issuance would be either through a private placement, rights issue, or a public offer.
A portion of the N250 billion capital raise is targeted at acquiring strategic agricultural assets. Joe Attueyi, the chairman of the board also noted that the raise is targeted at financing working capital in addition to the new assets.
The shareholders also voted to approve the company’s plan to convert some of its shareholders’ loans to equity. Mordi noted that the total amount of loans to be converted would be contained in its latest financial statement.
Oil palm operations are on track
The statement by Mordi corroborates his assessment of the company’s operations in December 2024. At the time, he noted to BusinessDay that the company’s oil milling operations are expected to start between Q1 and Q2 2025.
Recall that one of Mordi’s first moves as CEO of Ellah Lakes was the acquisition of Telluria Farms, a 2,400-hectare oil palm plantation domiciled in Edo State. According to the Food and Agriculture Organization, it takes between 3 and 4 years to start fruiting after being planted.
The organisation notes, “During that time, the grower must spend money and work hard, without harvesting any fruit or earning any money.” Hence, the story of Ellah Lakes is not uncommon, as it makes a transition into the oil palm industry.
