Nigeria’s sugar industry has shown robust growth in the last four to five years.
Large-scale investors are already pumping over $2.6 billion into plantation expansion and on new machinery. Packaged sugar production and vigorous cane development are ongoing in states such as Kogi, Adamawa, Jigawa and Niger, among others, BusinessDay findings have shown.
But one often neglected area is the growth of small-scale sugar makers that have tapped into the Backward Integration Programme (BIP) introduced in the industry by the Federal Government.
Already, the segment has attracted mini firms such as Oyo State Farmers Union; Goro Farms in Sokoto; Green Star Farms in Gumi, Zamfara State; Ogun/Ondo Farmers Association, among others, Latif Busari, executive secretary, National Sugar Development Council (NSDC), has disclosed.
Already, total national sugar demand has risen to 2 million metric tonnes (MT) as at end of 2013, from 1.5 million tons in 2012. Refining capacity utilisation rose to 75 percent, from 60 percent, while raw sugar imports dropped to 800,000MT from 1.4 million MT.
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Similarly, refined sugar imports nosedived to 0.67 percent, from 1.88 percent reported in 2012.
“The growth of this segment is a boost to the SME sector and an indication that right policies can spike growth and investment,” said Matthew Ibeabuchi, an industry analyst.
Apart from mini market, the large scale market is also integrating with local farmers, guaranteeing them markets, while also providing technical empowerment.
‘’Yes, I can speak for the farmers we are in partnership with in Adamawa,’’ said Graham Clark, group managing director, Dangote Sugar Refinery (DSR) in an interview with BusinessDay.
‘’We assist them with technical input, in the procurement of fertilizer, in the maintenance of equipment and most importantly, guarantee them ready market,” Clark said.
While Dangote Sugar Refinery (DSR) is investing $2 billion in six states in the country, Flour Mills is pumping over $250 million in Sunti, Niger State.
“Apart from the 12,500 ha Sunti BIP project which is rated the fastest growing among ongoing projects, Golden Sugar Company is also exploring new sites in Kogi and Niger for bigger sugar projects,” said Busari.
HoneyGold Group is investing $300 million on two sites in Adamawa State, with the target of producing 200,000 tons sugar annually, while Crystal Sugar Mills is currently investing $30 million to expand its operations to produce 60,000 tonnes sugar/annum
Crystal Sugar has completed factory refurbishment and is also promoting farming activities in Hadejia.
Confluence Sugar Company is investing $240million in Kogi State to produce 200,000tonnes sugar/annum on about 37,000 ha of land at Ibaji.
ODINAKA ANUDU
