Multri-Trex, once Nigeria’s biggest cocoa processor, has finally exited the debt trap after repaying N9.903 billion to the Asset Management Corporation of Nigeria (AMCON), a liability originally transferred from the defunct Skye Bank.
Multi-Trex’s capacity once stood at 65,000 metric tons (MT), making it the nation’s largest processor of cocoa. However, trouble started when it borrowed N8.5 billion Afreximbank loan through the defunct Skye Bank in 2010. The loan was later sold to AMCON, which is popularly known as Nigeria’s bad bank.
The fight for the recovery of the company by its founder, Mr Dimejo Owofemi, led to several other battles, including multiple court cases and settlement meetings. However, the meetings did not produce the desired results.
Late Mr Dimeji Owofemi
“We decided to approach First Bank United Kingdom. They helped us to find a partner to team up with us to raise equity. And the money was to be be used to repay AMCON. They teamed up with African Finance Corporation. First Bank UK called for a meeting with AMCON and Africa Finance Corporation on June 15, 2015. They told AMCON not to do anything yet, assuring that they would come in October to repay the debt. Fourteen days later, AMCON came to shut down our factory. With that, Africa Finance Corporation wrote to us that they could no longer continue with us because of what happened,” Mr Owofemi told this reporter in 2016.
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Mr Owofemi’s factory was later taken over by AMCON and shut down. He died in 2020 of suspected heart attack. In the bank’s 2024 financial statement ended on April 30, the bank revealed that out of the N9.903 billion loan owed AMCON, it repaid N2.5 billion before June 30, 2022, further paying back N3.25 billion before June 30, 2023. The cocoa processor noted that it had repaid the entire loan as of the time of signing the 2024 financial statement.
“The reopening of the company came as a result of the agreed terms of settlement between AMCON and the company. The Corporation has since 3 August 2022 yielded the control of the company and its assets to the owner. Also, as at the date of signing this report, the company’s indebtedness to AMCON has been fully repaid,” the bank said.
The company had also obtained a NEXIM Bank loan of N470.044 million, which was granted to it through a debt restructuring arrangement to consolidate short and medium-term direct lending facilities it earlier obtained. The duration of the loan is for 3 years (6 equal and consecutive semi-annual instalment payments) with an interest rate of 14 percent per annum.
“The loan is secured with a lien on raw materials to be purchased by the company, corporate guarantee of the company and the assignment of Export Expansion Grant due to the company to NEXIM. The NEXIM loan has a carrying amount of № 470,043,919 (Restated
April 2023 470,043,919).”
Food Concepts enters
The AMCON loan had grown with interests over the years. As of 2022 when the company was re-opened, it was indebted to AMCON to the tune of over N9 billion. It was agreed that the balance would be repaid by instalment and with a 7 percent of the balance after the first instalment by Messrs NFoods Universal Concepts Ltd (NFUC) in exchange for 70 percent of company’s shareholding, post investment.
“The company has appointed a team of professionals to obtain necessary regulatory approvals to allot the company’s shares to NFUC for payments made by them to AMCON on behalf of the company. The decrease in the gearing ratio from 52 percent to 23 percent reflects a substantial reduction in the company’s reliance on debt financing,” the company noted.
“This notable improvement suggests a more conservative and lower-risk financial structure, such a shift enhances financial stability, improves liquidity, and positions the company well for long-term sustainability. It indicates that the company is more resilient to economic fluctuations and has greater capacity to manage unforeseen financial challenges.”
Multi-Trex has since been listed at the Nigerian Exchange (NGX). It expanded its share capital following the successful listing of 1.72 billion ordinary shares NGX in 2024, brings the company’s total issued and fully paid-up shares from 4.51 billion to 6.23 billion.
