With the aim of transforming sugar production across the nation, the Niger State government has inked a Memorandum of Understanding (MoU) with three firms for the cultivation of sugarcane and sugar Manufacturing in the State. The agreement was signed in Government House Minna, according to a statement sent by the Chief Press Secretary to Bologi Ibrahim, the state governor of Niger State. Parties involved include Rite Foods Ltd., Niger Foods, Legacy Sugar Company Ltd., and Uttam Sucrotech International. Under this deal, Six sugar mills would be established in Niger State over the course of the three-year project, with four of them to be situated on 148,000 hectares of land between Shiroro and Minna, as per the report.
In accordance with the deal, Uttam Sucrotech Company is going to supply 110,000 out growers with sugarcane, and other by-products including refined ethanol, power, and cow feeds will also be created. Speaking at the event, Niger State Governor Mohammed Umaru Bago referred to the deal as unprecedented, adding that it will drastically improve people’s quality of life. Reiterating that the State Government will make Agriculture the backbone of the economy, he added that the State will shortly receive a billion dollar sovereign guarantee fund, which he plans to use for the project.
Investors expressed confidence in the initiative.
According to Rajan Adlakha, Chairman of Uttam Sucrotech Company, Niger State has an extensive portion of land that ought to be cultivated. He emphasized that the State has the capacity to manufacture the necessary number of liters of ethanol in the nation and noted that the company plans to provide the most advanced Technology for the sugar plants. Sammy Adigun, Chairman of Niger Foods, asserted that this recent agreement will change Nigeria’s low sugar production narrative. Adigun noted that the factory will yield 145 million liters of ethanol, and each benefited Farmer will receive about five to six million Naira in Revenue annually.
Mr. Seleem Adegunwa, the Managing Director and Chief Executive Officer of Rite Foods, guarantees that the company would fulfill its commitment to ensure that there are customers for the product at the conclusion of the manufacturing process. Speaking on behalf of Legacy Sugar Company, Alh. Abubakar Isah guaranteed support, noting that the governor’s idea will lessen the strain on the currency and promote community development. At the event, other interested parties and Investors expressed their continued faith in the governor’s capacity to create an atmosphere that is conducive to Investment while assuring the state’s residents that the governor will leverage extensive knowledge to continue investing in the State and provide opportunities for the populace.
Nigeria’s sugar market is still drawing in new capital.
Apart from Niger, sugarcane farming is also thriving in the states of Adamawa, Taraba, Kwara, Kano, Kaduna, Kastina, Jigawa, and Sokoto. Following the Nigeria Sugar Master Plan (NSMP) implementation ten years ago, the country’s sugar production has increased gradually, and billions of naira have been invested in its backward integration policy (BIP) program. Nigeria’s sugar market has grown and is still drawing in new capital due to its producers having made significant expenditures in developing massive sugarcane crops and constructing mills in accordance with the strategy.
Also, the Oyo State Government has approved ₦850 million to support its investment in Oyo Sugarcane Processors Limited, which is based in Iseyin, as part of efforts to increase output through the establishment of a dedicated sugarcane plantation, processing and production. The nation is now on a sustainable pathway to achieving sufficiency owing to the NSMP. As of recent years, Nigeria’s production capacity is estimated to be 1.5 million metric tons of sugar, however actual output frequently falls short because of inefficiencies.
Related Article: FG in second phase of sugar master plan
Nevertheless, stakeholders highlight the industry’s significance in supporting regional agriculture and positioning it as a vital sector for job generation and economic diversification. Nigeria plans to produce two million metric tons of sugar by 2025 with more investment and advancements. The sector is placing more emphasis on sustainable methods, such as enhancing environmental management throughout the production and processing of sugarcane. These changes point to a deliberate attempt to increase Nigeria’s capacity for production and lessen its dependency on imports in the direction of a more self-sufficient and sustainable industry.