Golden Sugar Company, a subsidiary of Flour Mills Nigeria Plc, has signed a memorandum of understanding (MOU) with the Nasarawa State for the production of sugar in Toto local government area of the state, in what will cost the parties over $300 million
The brief signing ceremony held at the Nasarawa State Governor’s Lodge in Abuja, on Friday, was witnessed by the governors of Borno and Kwara States, Babagana Zulum and Abdulrahman Abdulrazaq respectively, as well as a former governor of Adamawa State, Jubrilla Bindow.
Managing director/CEO of NASIDA and the secretary to the Nasarawa State government, Mohammed Ubandoma Aliyu, signed the agreement on behalf of the state government, while the managing/CEO, Flour Mills Nigeria Plc and the company’s secretary, signed on behalf of the investors.
With the signing of the agreement, Golden Sugar Company, will take possession of 20, 450 hectares of land, and will soon commence cultivation of 15000 hectares for raw sugar, while the remaining will be devoted to critical infrastructure such as roads, schools and other facilities to support the host communities.
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Nasarawa State governor, Abdullahi Sule, said the MOU was in line with the policy thrust of his administration, to create employment, as well as turn the state into an investment haven.
According to Sule, the event was also in line with the policy thrust of President Muhammadu Buhari, on local food production, as well as meeting the sugar consumption need of the country.
While acknowledging the potentials of Nasarawa State in agriculture, the governor recalled that the journey leading to the signing of the agreement began shortly after he assumed office two years ago, with a visit to the head office of Flour Mills Nigeria Plc, in Lagos.
Sule said with the potentials that abound in the state in the agricultural sector and with Flour Mills Nigeria being one of the most reputable companies in the food industry, there was no way he could go to sleep without bringing the company to Nasarawa State.
The governor thanked Flour Mills for choosing to do business in the state, assuring the company of adequate measures put in place to secure the area where the 20, 450 hectares is located.
He, however, appealed to the firm to adhere to the regulations of the National Sugar Development Council, which stipulates, among others, that 30 percent of the acquired land must be devoted to the indigenes of the area, as out-growers.
