Nigeria’s sugar production between 2011 and 2015 reached 83,188 metric tonnes (mt), but the value of imported sugar within the period hit an all-time high of $2.87 billion, according to a report from the National Sugar Development Council.
A break-down of the five-year report shows that Nigeria produced sugar worth 35,000 mt in 2011, churning out 10,843 mt in the following year. Sugar production by local sugar factories amounted to 10,000 mt in 2013, 12,345 mt in 2014, and 15,000 mt in 2015.
In terms of import values, Nigeria brought in sugar worth $657.12 million in 2011; $517.22 million in 2012, and $518.9 million in 2013. For 2014 and 2015, the then Africa’s biggest economy imported raw sugar worth $632.7 million and $552.54 million respectively.
The amount of metric tonnes of sugar imported within the five years was 6.49 million.
While 1.10 million mt of sugar came into Nigeria in 2011, 1.09 million mt was imported into the country in 2012. Also, 1.37 million mt of sugar was shipped into the country in 2013, while 1.43 million mt of the product was imported in 2014. In 2015, sugar estimated at 1.48 million came into Nigeria from other countries, especially Brazil.
The average sugar price within these five years was $451.3 per ton, Real Sector Watch’s computation shows.
Nigeria spent $227 million on import of raw sugar and chemically pure glucose between January and June 2016, according to the Central Bank of Nigeria.
Nigeria’s sugar production in the past three decades has been low, with the country achieving its highest production of 41, 478 mt in 1990. The country did not, however, produce any sugar between 2001 and 2005, data show.
Nigeria mainly refines raw sugar imported from Brazil, but major sugar players such as Dangote and Flour Mills of Nigeria have set up plantations in the northern part of Nigeria.
Dangote Sugar Refinery is committing $2 billion investments in six states in the country, through its Savannah Sugar in Numan, Adamawa State, North-East Nigeria.
Dangote Sugar is Nigeria’s biggest sugar refiner.
Flour Mills, through its Golden Sugar Company, is investing $300 million in Niger State, having completed a cane yard and truck park, sugar grading and nagging facilities.
“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 sitesin Kogi and Niger for bigger sugar projects,” said Latif Busari, immediate past executive secretary, NSDC, during a media chat in Abuja.
Also, Confluence Sugar, Kogi; Crystal Sugar Mills, Jigawa; and Unicane Industries, Kogi State are investing in Greenfield projects. While Crystal Sugar has completed factory refurbishing and plans test-running this year, both Crystal and Confluence Sugar have already established 50ha and 100ha cane nursery respectively.
HoneyGold Group is also investing $300 million on two sites in Adamawa state, with the target of producing 200,000 tonnes sugar annually.
BUA Group has a refining facility in Lagos, with large hectares of land for sugar plantation in Kwara State.
Similarly, McNcihols, Consolidated Plc, Lucke Sugar and Dogan Sugar are investing in new cubing, Vitamin A fortification and packaging lines.
Sugar import into the country often comes from Brazil. Constant importation is driven by Nigeria’s large population, growing middle-class and product demand by food, beverage and tobacco sub-sector.
The local industry is driven by the demography as well as growth of food and beverage . Analysts see urbanisation as one key factor that will continue to raise the performance of the sector.
‘’Nigeria’s growing urban population and rising income levels are likely to drive demand for sugar in the coming years, as urban populations tend to consume more sugar than rural ones,’’ said Julia Fioretti of Reuters, in an article.
Sugar makers with evidence of plantations were provided with import waivers for raw sugar by the Goodluck Jonathan administration, but some players were recently accused of not investing in backward integration, which was earlier agreed.
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