The Federal Government has scored Dangote Sugar Refinery PLC, BUA Sugar Refinery Limited and Golden Sugar Company low on the Backward Integration Programme (BIP) entered into with the companies in July, 2013 to boost the implementation on Nigeria Sugar Master Plan (NSMP).
Declaring open the 2017 Mid-Term Review of NSMP, the Minister of Industry, Trade and Investment, Okechukwu Enelamah admitted that the Nigeria sugar industry has been challenging and “if we don’t overcome this challenges, it will be difficult to implement plans on other products,” he said.
While giving a breakdown of the performance of the BIP companies, the Executive Secretary of National Sugar Development Council (NSDC), Latif Musari revealed that the Federal Executive Council (FEC) approved the NSMP in September 2012 with the objectives of raising local sugar production to attain self-sufficiency, reduce sugar import dependency among others.
He explained that in the implementation plan, government signed a Memorandum of Understanding (MOU) with three pioneer companies to spearhead the initiated Backward Integration Programme (BIP) as a way of fast tracking the production of sugar locally in order to reduce total import of sugar in the country.
Musari stated that Dangote Sugar Refinery Plc, BUA Sugar Refinery Limited and Golden Sugar Company agreed to deliver on the cultivation of total land area of 39, 200 hectares (ha) of cane fields (company owned), 3,250ha of total outgrowers’ cane fields, 145, 300m of total production and an anticipated 16, 236 jobs in five years (from 2013-2018).
The executive secretary who made public the performance status report noted that the performance of the three companies under the BIP ushered new investment into the sugar sector valued at about N157 billion, with the establishment of a new 50, 000 tonnes/annum sugar estate at Sunti.
He stated further that under the period review, 9, 000 ha of land of cane field has been cultivated (250 per cent increase from 2013 when the plan commenced), adding that, 481ha of Outgrowers farms supplying cane to sugar estate (up from 81ha in 2013).
“The industry has created 7, 850 jobs, up from a total of 3, 500 employed by all the refineries as at 2013 representing 224 per cent. 25, 000MT of sugar was delivered in the 2016 crushing season (up from 6, 000MT recorded in 2013 season),” pegging the total performance of the three companies at 40. 3 per cent below.
Musari, however, noted that many projects that would have raised the implementation profile of the NSMP were stalled by government/host community unwillingness to give out land. “The land issue had manifested in DSR SSCL Numan land dispute, this has been largely resolved. DSR ‘s acquisition of 6, 500ha land in Guyuk for expansion of the SSCL Numan project was stalled by untenable demands of local community leaders”
He stated further that, “Golden sugar estate, Sunti has witnessed so many disruption during its development and even as recent as March 22 2017 requiring the intervention of the Police and local Chiefs while BUA has also reported community hostilities against its site operations at its BIP project site in Lafiagi Sugar Estate.”
Musari noted that “having identified the constraints and designing measures to contain them, the prospects for the effective implementation of the NSMP over the next five years is bright. We have had series of meetings with the operators and are satisfied that the plans they will be presenting today are realistic and achievable.”
He concluded that the combination of the new guidelines with the actions that government and relevant agencies will be taking will result in a greater commitment by operators and ultimately, more sugar projects and substantial increases in local sugar production levels.
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