The new executive secretary of the National Sugar Development Council, Zacch Adedeji said Nigeria appears to be on a smooth path in its drive towards sugar sufficiency as it is now completing local refining of raw sugar.
“We now refine sugar 100 percent in Nigeria. We’ve done excellently well in refining raw sugar based on the Nigerian Sugar Master Plan that we have,” Adedeji told journalists during his visit at FMN.
The Nigerian government introduced NSMP in 2012 as a policy roadmap for reaching self-sufficiency in sugar production and to chart a course for the industry. Since its establishment until now, the industry has recorded significant success.
For example, sugar production in Nigeria has increased from 6,843 metric tons in 2012 to 38, 597 MT. Similarly, the National Sugar Development Council (NSDC) stated that the cost of importation of raw sugar has reduced from its record $632.72 million in 2014 to $382.29 million in 2019. He added that the tour correlates with the Council’s mandate to utilize the NSMP policy to the brim whose whole point is backward integration.
The three main industry operators Dangote, BUA, and FMN have committed over the years and currently have reviewed their commitments to ensure the sugar master plan mandate is achieved. Adedeji said, after visiting the three refineries, he was impressed with the development and sure that the dedication put in place will not be set back and requires lots of capital, commitments, and land. Although he stated that the step was the right one to take vis-à-vis backward integration, the country is still slow due to numerous challenges we encounter, stating that sugar needs a lot of capital and gestation period.
Nigeria has stopped the importation of refined raw sugar, it is still importing raw sugar. Adedeji, therefore challenged the key holders to strive harder to ensure the country stops the importation of raw sugar and to grow cane which he stated is the only way to meet the desires of the main goal which is employment.
“The sugar industry presents that to us where we can have direct labor of 110, 000 when we’re in full gear of meeting 1.7 million local demand that we have by end of 2024,” he said.
He stated further that through its backward integration program, FMN via Golden Sugar acquired a piece of land in Sunti, Niger state where it established a sugar estate and invested more than 65 billion. It has invested an additional $200 million in the Apapa refinery where it signed up the BIP.
As regards The Golden sugar target under the BIP, the deputy chief operating officer, FMN, Sadiq Usman said that the company has committed around 250,000 tons annually between two sites and in Niger State, as it is also planning to acquire more piece of land. He said that the country is at a 5 percent deficit of the expected local production. Despite the positive abilities, logistics, foreign exchange, COVID-19, and freight, and other challenges regard trade may setback the progress if not properly handled. This is one of the challenges the Apapa factory encounters.
However, Usman stated that the big challenges ensure the government and other stakeholders in the industry provide support to ensure the National Sugar Development Council commitment is attained to reality.
“That’s the most important thing for us,” he said. “To make sure that what government says is the agenda and should stand by it and the rest of the players in the industry, including ourselves.”
“Also, when we get the necessary support that the rules of the game are transparent and are clear and followed by all the parties to ensure success. That’s what most important for us in the medium to long term, otherwise, we’re not going to meet this target,” he added.
