Sokoto State government said it has repaid N1.5 billion debt to take over its furniture company from the Assets Management Company of Nigeria (AMCON)
Making the explanation in a statement signed by, Imam Imam on Thursday, April 21, 2016, the Sokoto State Government said having retaken possession of the furniture company, they have opened discussions with some German and Kenyan investors ready to bring funds to revive the company's operations.
The furniture factory which was established in 1973 was one of the largest employers of labour in the state before it went comatose.
Some years later, the government took a loan to revive its operations but after defaulting on the terms of agreement, AMCON took over the company.
"Considering the importance of the company to our economy in terms revenue generation and job creation, government decided to pay the debt and retake possession of Sokoto Furniture Company," the statement quoted the state commissioner of finance, Saidu Umar, as saying.
"We are bringing private investors to revive the company and put it back on sound footing. Already, discussions have commenced between some Kenyan and German investors in that regard. Having invested funds to retake it from AMCON, we will ensure such expenditure is justified," he added.
The government said once fully revived, the company will produce modern furniture for schools, hospitals and related areas.
"For a start, we hope to make use of the company to produce school furniture to meet the requirement of the state now that we have declared a state of emergency in the education sector in the state," Saidu Umar added.