Politics and Debt Sink Highland Tea as Mambilla Beverages Teeters on Collapse

By Ben-Danjuma

Mambilla Brevarges Taraba – July 31, 2025 | Newspointer News

Taraba State’s only commercial venture, Mambilla Beverages Limited, producers of the popular Highland Tea, is on the verge of total collapse as a deadly mix of bureaucratic bottlenecks, political interference, and a mounting debt burden threatens its survival.

Once valued at over ₦13 billion, the company’s worth has now reportedly plummeted to ₦3 billion, with insiders warning that most of its equipment is obsolete and its tea plantations shrinking rapidly.

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Findings by NIGERIAN NEWSPOINTER reveal that the crisis deepened after the state government allegedly compelled the company to guarantee loans exceeding ₦23 billion for projects unrelated to its operations — including a controversial ₦5 billion feasibility study on rice production and another €10 million loan for farm machinery.

Under former Governor Darius Ishaku, Mambilla Beverages had begun paying ₦50 million in annual dividends to its 16 local government shareholders. That progress has since been reversed under Governor Agbu Kefas, amid growing complaints of ethnic dominance and mismanagement.

The appointment of Barr. Gebon Kataps, the current Secretary to the State Government (SSG), as board chairman, is seen as a major turning point in the company’s troubles. Kataps, who fiercely opposed previous efforts to privatize the firm, now allegedly oversees a clique of political elites controlling the company’s affairs.

Sources within the company accuse the new leadership of sidelining the host Kakara community, claiming that 85% of staff now come from a single ethnic group on the Mambilla Plateau. The situation has created deep-seated resentment and triggered fears of renewed unrest.

In what critics call a classic case of political capture, Dr. Abubakar Kara, a university lecturer with ties to the ruling elite, was appointed acting Managing Director, after reportedly understudying the former CEO in a shadow succession plan.

In a last-ditch effort, the Taraba government invited Kipchimchim Group, a top Kenyan tea conglomerate, to take over operations. However, NIGERIAN NEWSPOINTER learnt that the investors walked away from the deal after discovering that Mambilla Beverages is a state-owned entity, with no clear partnership framework or business plan.

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Despite being flown in for the Taraba Investment Summit and taken on a guided tour of the Kakara estate, the Kenyans declined to commit.

Speaking to NIGERIAN NEWSPOINTER, the acting MD admitted that most of the company’s machinery was over 40 years old, forcing management to source scarce parts from China, India, and Argentina. He also confirmed that the company now requires customers to pay in advance before production — a drastic shift from previous “cash and carry” operations.

A report by the Obadiah Ando/Kifasi Committee had long recommended removing the SSG from the board and appointing a neutral technocrat to shield the company from politics. But the government has yet to act on it.

Meanwhile, NIGERIAN NEWSPOINTER has been unable to reach Barr. Kataps for comments. Multiple calls and messages went unanswered. When he eventually responded, he promised to revert but failed to do so as of press time.

Allegations of billions in diverted funds and the secret purchase of a bulletproof vehicle for a top government official are also under investigation.

Mambilla Beverages Limited — once a source of pride and profit — is now caught in a political chokehold. If urgent reforms are not undertaken, Highland Tea may soon become a bitter taste of what could have been.

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