New Telegraph

FG grants N637bn concession for sugar import

  • Vessels arrive with 133,730 tonnes

 

Four sugar firms have been granted concession by the Federal Government to import 1.7million tonnes of sugar valued at N637billion ($909.4million) before the end of the year.

 

According to the International Sugar Organisation (ISO), the price of the commodity has reached $534.95 per tonnes as October 20, 2022. Sugar is currently on the list of commodities on the foreign exchange restriction list of the Central Bank of Nigeria (CBN).

 

However, it was gathered that under the Backward Integrated Programme (BIP), the system allows National Sugar Development Council (NSDC) to allocate a certain importation quota to the firms annually based on their BIP performance to utilise or leverage in line with their strategic discretion.

 

Under the special consideration, Dangote Sugar Refinery (DSR) was allocated 864,000tonnes of import capacity; Golden Sugar Company (GSC); 400,000tonnes; BUA Sugar Refinery (BUA), 386,000tonnes and Bacita Sugar Company (BSC), 50,000metric tonnes. Findings by New Telegraph also revealed that two of the firms, DSR and GSC will take delivery of 133,730 tonnes of the consignment from three vessels this week.

 

At Apapa Bulk Terminal Limited (ABTL), Desert Symphony will berth with 41,000 tonnes, while Wave Runner and Common Spirit with offload 46,830 tonnes and 45,900 tonnes respectively at Greenview Development Nigeria Limited (GDNL).

 

In September 2022, Nigerian Ports Authority (NPA)’s shipping data revealed that two vessels discharged 92,600 tonnes at GDNL from Auarius Honor laden with 45,850 tonnes and Ocean Crown, 46,750 tonnes. Statistics from Trade Data Monitor (TDM) based on the Brazilian Foreign Trade explained that Brazil sugar exports to Nigeria rose from $458.9million in 2019 to $702.8million in 2020.

 

According to TDM, Brazil’s  investcumulative raw sugar exports to Nigeria in 2020/21 season was 1.62million tonnes, while domestic cane sugar production has slumped from 75,000 tonnes to 70,000 tonnes by about 6.7 per cent within one year

The country had projected to meet 800,000 tonnes target of raw sugar production in 2022 as demand by the food and drink manufacturing and retail markets is on the increase, however, Nigeria could not meet up to 5 per cent target as data from NSDC revealed that in 2016, local production of refined sugar was 25,000 tonnes; 2017, 20,184 tonnes; 2018, 14,918tonnes and 2019, 28,597 tonnes; 2020, 75,000 tonnes and 2021, 75,000 tonnes.

Notwithstanding the imports, Dangote Sugar has said that it would curb sugar import by 40  per cent by 2024. It would be recalled that the President/Chief Executive, Dangote Group, Aliko Dangote, had said that the integrated sugar complex to be located in Tunga, Awe Local Government Area of Nasarawa state, comprises 60,000ha sugar plantation and two sugar factories with capacity to produce 430,000tonnes per annum of refined white sugar representing about 30 per cent of the country’s consumption and would be the largest plant in Nigeria.

The sugar project will also provide 30,000 jobs for teaming youths in Nasarawa State. Dangote said that Phase II of the project, when extended to cover 100,000ha, would make the sugar plant the largest in Africa.

Dangote Sugar Refinery said it would comit over $700million  to its sugar projects which would have the capacity to crush 12,000 tonnes of cane per day (tcd), while 90MW power will be generated for both the company’s use and host communities.

BUA Group on the hand commits investment of over $300million in its Lafiagi Sugar Company (LASUCO) – an integrated milling factory that is comprised of a Sugar mill, Ethanol plant, sugar refinery, and power plant that will be integrated into the national grid.

Also, BUA’s sugar company with 20,000 hectares of land has a processing mill capacity of 10,000 tcd from sugar cane to widely accepted white sugar, with a refining capacity of 220,000 metric tonnes. While FMN Flour Mills of Nigeria Plc (FMN) through its subsidiary Golden Sugar Company situated on the Niger river in Niger State has invested over N73 billion.

At Sunti, the company has an area of 22,000ha on which a 15,000-hectare sugar estate is being developed. The FMN sugar estate is made of 3,500ha of irrigated sugar cane and a Sugar Factory with a 3,000 tonnes per day milling capacity. Meanwhile, the council has promised to boost the economy of Oyo State through its sugar factory.

The Executive Secretary of the council, Mr Zacch Adedeji made the promise when the Director- General of the Oyo State Liaison Office, Abuja, Mr Wale Ajani, visited him in Abuja.

 

He explained that the council had established a mini sugar factory in Iseyin and Iwajowa Local Government Areas of the state, noting that Oyo, Ogun and Lagos states had 80 per cent of sugar consumption in the country.

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