In another bold move for self-sufficiency in sugar production through the government’s backward integration policy, the pan-African conglomerate, Dangote Group has signed a Memorandum of Understanding (MoU) with Niger State government for the establishment of a huge US$450m state-of–the-art and fully integrated sugar complex.

 

Once completed, the 160,000-tonnes-per-annum-capacity project is expected to generate over 15,000 jobs in Niger State and bring about a complete economic turnaround for the central Nigerian region.

 

Extensive out-grower scheme

 

The US$450m pact, which was signed in the government house in Minna, will see the company producing raw sugarcane on 16,000 hectares of the Lavun Local Government via an out-grower scheme.

 

The company, which is currently operating out-grower schemes in rice production in a number of states, boasts Africa’s largest sugar refinery in Lagos, alongside a sugar cane plantation in Numan, Adamawa State.

 

The Group’s President, Aliko Dangote, said the new investment was informed by his company’s firm belief in the potentials of the Nigerian economy, adding that the new outlay would add value and create many jobs for Nigerians.

 

He commended the state Governor, Alh. Abubakar Sani Bello, for his foresight and efforts to woo investors to Niger State noting: “the Dangote’s integrated sugar project in Niger State will also include the establishment of integrated sugar mills, generate power, produce molasses, ethanol fuel, biomass and produce animal feeds.”

 

A “game changer” for Nigeria  

 

In his remarks, Governor Bello said the deal would revolutionise agriculture in his state and in Nigeria. Representative of the Minister of Industry, Trade and Investment, Alhaji Aminu Bisala, added that Dangote is the biggest private sector supporter of the Nigerian economy, and Federal Government policies.

 

Group Managing Director of Dangote Sugar Plc., Eng. Abdullahi Sule, stated that the MoU would be a “game changer” for Niger State economy and Nigeria as a whole. 

 

According to Mr Sule, the Dangote Sugar Refinery is developing a sugar backward integration plan through the production of 1.5MT/PA within the next decade across the states of Nasarawa, Adamawa, Kogi, Kwara, Taraba and Niger. 

 

The Group’s Executive Director of Stakeholders’ Management and Corporate Communication, Ahmed Mansur, has also previously announced that the Group would be investing over US$1billion in the agricultural sector in the country, specifically in rice, sugar, tomato and dairy productions.

 

Since Dangote’s foray into sugar business commenced in 1981, the Group has injected over US$104m into the Savannah Sugar Company Ltd it acquired from government in 2003. Savannah Sugar this year alone produced 20,000 metric tons of raw sugar from its plantation.