Business

$3.5bn investment required in sugar sector as FG set to launch second phase master plan

Over $3.5 billion Investment is required in the sugar sector to meet up the rising demand of the commodity as the Federal Government is set to launch the second phase of the Nigeria Sugar Master Plan (NSMP).

Speaking at the Sugar Industry Monitoring Group (SIMOG) in Abuja, the Executive Secretary of the National Sugar Development Council (NSDC), Mr Kamar Bakrin said the Council is committed to the NSMP goals of self-sufficiency in sugar production, job creation, and industrialisation in Nigeria.

The Executive Secretary who shared the performance evaluation of the Phase One of the NSMP and the implementation roadmap for Phase Two, emphasised the need for operators to keep to their commitments.

He promised that the NSDC will play its sector development role to take the industry to the desired heights.

“The plan targets the production of a minimum of 2 million metric tonnes of sugar, 400 MW of electricity and the creation of 110,000 jobs across the value-chain, nationwide.

“Crucially, the NSMP II will require between 200,000 to 250,000 hectares of suitable land, and an estimated $3.5 billion in investments. In addition, collaborative efforts will focus on empowering host communities of sugar projects,” he said.

Bakrin stated that a robust framework has been devised to monitor the performance of NSMP II, establishing clear targets and milestones over the period.

“This monitoring mechanism ensures accountability and facilitates timely adjustments to optimise outcomes,” Mr Bakrin noted.

According to a statement by the NSDC media unit, another important aspect the Council is working on is the amendment of the NSDC Act to be able to appropriately support the growth of the sector and give investors’ confidence.

In 2012, the Federal Government approved and launched the NSMP, which is the strategic road map for sugar sector’s development and the enactment of a conducive policy environment for its implementation.

The policy positions the industry to attract investments in domestic production through backward integration programmes, offering tax incentives to investors.

SIMOG is made up of CEOs of all local sugar manufacturing companies. It is a peer review group that promotes the credibility of outcomes by validating performance data and providing a platform for sharing good practices and measures taken to overcome implementation challenges.

Participants at the SIMOG meeting include Ravindira Singhvi of Dangote Sugar Refinery, Temitope Hassan of Dangote Sugar Refinery, Ayodele Abioye of BUA Foods, Abdulrasheed Olayinka of BUA Foods, Labaran Saidu of BUA Foods, Sadiq Usman of Flour Mills, Oluwakemi Ashiru of Flour Mills, Onome Okurah of Flour Mills, Cosmos Ikhupria of KIA Africa, Inem Eyiho of KIA Africa, Owoniyi Babatunde of KIA Africa and Mrs. Mam Odofin of KIA Africa.

Tyavzua Saanyol