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FG target $350m Sugar Production expansion

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By Abdulwasiu Usman

FEC approved the second phase of the National Sugar Masterplan.

The Federal Executive Council (FEC) announced the approval of the second phase of the National Sugar Master Plan at the FEC meeting held at house of council in Abuja, led over by the President, Muhammadu Buhari. Speaking to the media, Mr. Niyi Adebayo, Minister of Industry, Trade and Investment asserts that the second phase of the sugar masterplan is a 10 year plan to save $350 million annually and generate 110,000 jobs in the country.

Mr. Adebayo stressed that in the second phase of the masterplan, Nigeria looks forward to saving $65.8 million on ethanol import and generating 400 megawatts of electricity and also targets the forex savings and job creation in the country. The investments in the national sugar policy were aimed at stimulating self-sufficiency in the commodities. Nigeria’s three million metric ton capacity is based on the refinement of raw sugar. Currently, we rely heavily on imported raw sugar, but phase two will allow us to become completely self-sufficient in raw sugar production in Nigeria.

Investors helped in the achievement of phase one main goal.

In 2012, the first phase of the master plan was approved, lasting from 2012 to 2022.The just approved extension of the project will last from 2023 to 2033. Given another 10 years to execute the main goals. The whole concept of the Sugar Master Plan is for the development of the sugar industry, for self-sufficiency in sugar production. Local production of sugar is one of the major benefits of the plan being implemented. Several policy measures are attached, in order to boost demand and attract private sector investments in the sugar industry.

Four major investors were involved in phase one of the Sugar Master plan, investing in the industry. These are Dangote Sugar, BUA Sugar, Golden Sugar Company (flour mill), and Care Africa Group which bought the Baccita sugar mill. The investors have jointly created 15,000 jobs and have about 200,000 hectares of land that has been acquired for sugarcane production to enable them to produce sugar locally. So, Council approved phase two of the National Sugar Masterplan.

Future plans need adequate monitoring framework.

Commenting on the target of the second phase, Adebayo said, since the launch of the masterplan, it has seen huge progress. The Backward Integration Project has started and has attracted over $3 billion worth of investments from the four major investors. Two-tier monitoring and evaluation framework are in place as a mechanism to guide the flow of the master plan. Some of which are: Sugar Roadmap Implementation Committee (SURMIC) a multi-agency committee, charged with supervision of the National Sugar Master Plan and Sugar Industry Monitoring Group (SIMOG) a group of the chief executives of all the local sugar manufacturing companies.

Chairman of Dangote Sugar Refinery Plc, Aliko Dangote asserts that the National Sugar Master Plan (NSMP) when executed as designed could fetch the nation foreign exchange in excess of $700million yearly from the Backward Integration component of the plan. He however warned that the BIP scheme must be protected to insulate the Nigerian economy to be able to achieve the twin objectives of local manufacturing and job creation. “If the national sugar master plan is followed strictly and the players all follow the rules, the country will be better for it as Nigeria will save between $600 million and $700 million annually as forex,” he said.

There is urgency for the need for stable sugar production.

Nigeria’s inability to have a stable sugar production industry has made the country lose out on the manufacturing of other core products like ethanol which is manufactured from excess sugar. As at 2019, at N400 per liter, Nigeria consumed about 400 million liters of ethanol, which means ethanol worth N160 billion is imported annually. These issues lend credence to the need for Nigeria to achieve the Sugar Master Plan as it will give the needed boost to sugar manufacturers to increase production and also, diversify the resource base for ethanol production.


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Abusi
Abusi
1 year ago

This is what we call diversification. If we can expand the sugar production, it will help maximize our output. We will be able to reach enough consumers at the same rate of cost of production.

Haykaylyon26
Haykaylyon26
1 year ago

Expansion of sugar productions nice one it will increase the output of the production and it will enough for the consumer and it will not be scarce and it is diversification

Tonerol10
Tonerol10
1 year ago

The expansion of sugar production will help the country to have a stable sugar production industry. This is a welcome development

Ultra0711
Ultra0711
1 year ago

The national sugar masterplan had a high prospect and needs utmost monitoring to prevent any circumstances that may distort the plan.

jdpumping
jdpumping
1 year ago

I hope the second phase wi go along way to help the sugar master plan by the government,I hope Pepe wil tap into the investment because of the long term plan and gain in for seeable future.

Christiana
Christiana
1 year ago

The purpose of the government’s investments in the national sugar strategy was to encourage greater self-sufficiency in the commodity markets.

Bola12
Bola12
1 year ago

The Sugar Master Plan’s overarching goal is to strengthen the sugar industry so that the country can produce all of the sugar it needs without importing any.

Tolaniiii
Tolaniiii
1 year ago

To insulate the Nigerian economy and forward the goals of domestic manufacturing and job development, the BIP plan must be safeguarded.

Iyanu12345ogg
Iyanu12345ogg
1 year ago

The expansion of sugar production will help the country a lot because it encourages diversification and attracts good benefits.

Chibuzor
Chibuzor
1 year ago

The second phase of the sugar masterplan is a ten-year plan with the goals of saving enough funds yearly and creating employment across the nation.

Adesanyaj72
Adesanyaj72
1 year ago

The purpose of the investments made in the national sugar policy was to encourage greater self-sufficiency in the production of the commodities.

Kazeem1
Kazeem1
1 year ago

At the moment, we place a significant amount of reliance on the raw sugar that is imported; but, after phase two is complete, we will be able to produce all of the raw sugar that we need in Nigeria on our own.

Taiwoo
Taiwoo
1 year ago

They have purchased vast tracts of land specifically for the cultivation of sugarcane in order to enable them to manufacture sugar on the local level. Therefore, the second phase of the National Sugar Masterplan was given the green light by the Council.

Godsewill Ifeanyi
Godsewill Ifeanyi
1 year ago

Nigeria has lost out on the production of essential goods like ethanol, which is made from extra sugar, because of the instability of its sugar production business.

Nwachukwu Kingsley
Nwachukwu Kingsley
1 year ago

It is imperative that the BIP plan be safeguarded in order to insulate the Nigerian economy and enable the country to meet its dual goals of increasing domestic manufacturing and employment opportunities.

Hassan Isa
Hassan Isa
1 year ago

Nigeria’s Sugar Master Plan, as it will provide the impetus for sugar producers to ramp up output while also diversifying the country’s ethanol industry’s access to raw materials.

theApr
theApr
1 year ago

Nigeria’s inability to have a stable sugar production industry has made the country lose out on the manufacturing of other core products like ethanol which is manufactured from excess sugar.

Remi1
Remi1
1 year ago

Currently, we depend heavily on imported raw sugar, but once phase two is over, we will be able to generate all of the raw sugar that we require in Nigeria on our own.

DimOla
DimOla
1 year ago

If the federal government can achieve this level of sugar production and expansion then we should begin to think of exportation.

SarahDiv
SarahDiv
1 year ago

If federal government can succeed with it, it will generate revenue, reduce inflation to some degrees, create employment opportunities and it is very possible to export to other countries ones the expansion is concluded.