Africa > West Africa > Nigeria > Dangote signs $450million jumbo sugar production agreement with Niger state

Nigeria: Dangote signs $450million jumbo sugar production agreement with Niger state


Yesterday, the Pan African Conglomerate, Dangote Group took an extra bold move for self-sufficiency in sugar production through the Nigerian government’s backward integration policy. The group signed a Memorandum of Considerate (MoU) with the Niger National Government for the establishment of a jumbo $450million national-of–art and fully integrated sugar complex.

According to the President of the Group, Aliko Dangote, this investment was informed by his company’s firm belief in the potential of the Nigerian economy, adding that the new outlay will add price and create jobs for Nigerians. The project will generate over 15,000 jobs in the national and bring about a complete economic turn-around for the national.

While commending the national governor, Alh. Abubakar Sani Bello for his foresight and efforts to woo investors to Niger national, Dangote said that “Dangote’s Integrated Sugar Project in Niger National will as well include the establishment of integrated sugar mills, generate power, produce molasses, ethanol fuel, biomass and produce animal feeds.”

The $450million pact, which was signed in the government home, will see the company producing raw sugar cane on 16,000 hectares of land at Lavun Local Government through an out-grower scheme. The Group, which is currently operating the out-grower scheme in rice production in a number of states, has Africa’s major sugar refinery in Lagos and a sugar cane plantation in Numan, Adamawa National. This pact will as well further increase the company’s capacity in sugar production.

According to the Governor, this transaction will revolutionize agriculture in Niger national and Nigeria. He as well expressed his joy that the MoU was signed during his own government and described Dangote as the liberator of the Nigerian economy and a dependable partner. The Governor again urged the Group to explore other investment opportunities available in the national, just as he announced that the national is open to multi-sectoral investments.

A representative of the Minister of Industry, Trade and Investment , Alhaji Aminu Bisala said Dangote is the biggest private sector supporter of the Nigerian economy and federal government policies. He as well said the federal government was comfortable with the numerous investment efforts of the Dangote Group.

Group Managing Director of Dangote Sugar Plc, Engr. Abdullahi Sule said the integrated sugar mills will have the capacity to produce 160,000MT of raw sugar. He further revealed that the Dangote Sugar Refinery is developing a sugar backward integration plan through the production of 1.5MT/PA in ten years in Nasarawa, Adamawa, Kogi, Kwara, Taraba and Niger states respectively.

It would be recalled that the Dangote Group ventured into the sugar business in 1981. It has injected over $104million into the Savannah Sugar Company Limited it acquired from the government in 2003. This year alone, Savannah Sugar produced 20,000MT of raw sugar from its plantation.

Related Articles
  • Enforcing Corporate Governance Code in Telecoms Sector

    2017/11/27 The renewed sensitisation campaign on the adoption of the mandatory corporate governance code in the telecoms industry, will drive the increase in the sector, writes Emma Okonji
  • Small firms the focus as Nigeria launches action plan to improve business conditions

    2017/11/11 Nigeria is moving forward with strategies to improve the business and investment environment in the country following the launch of a new package of reforms designed to support small businesses and clear hurdles to increase. On October 3 the federal government unveiled its second 60-day national action plan (NAP 2.0) – which forms part of the broader Economic Recovery and Increase Plan 2017-20 – aimed at increasing levels of employment, boosting GDP and facilitating business expansion. Targets of the NAP 2.0 include the adoption of electronic registration processes for new businesses; the registration of 300 microfinance banks to the national registry to assist with SME financing; and the elimination of illegal roadblocks on major trading routes across the country.
  • Useful tips for travellers to Nigeria

    2017/11/11 Relationships are very significant within the business community. Meetings typically open with a handshake, followed by a casual conversation about family, health and travel. In the Muslim north, wait for a woman to extend her hand before offering yours. The business discussion begins at the host’s indication. DRESS: Business formal is the required dress code for foreigners in any type of conference, while locals tend to opt for either Western or traditional attire. In a lot of work spaces, Nigerians will wear traditional garments on Fridays. Appearance is generally very significant and indicative of social and economic status.
  • Quattara Commends Buhari Over Nigeria's Recession Exit

    2017/11/01 President Alhasan Quattara of Cote d'voire on Monday in Abuja commended President Muhammadu Buhari for taking Nigeria out of recession. Mr. Quattara gave the commendation at the same time as he addressed National Home correspondents next a closed-door conference with Buhari at the Presidential Villa.
  • Nigeria Has Gender Problem in the Workplace

    2017/11/01 The National Competitiveness Council of Nigeria (NCCN) has highlighted the stark gender inequality within the country's labour force. Speaking to journalists, yesterday, next a round-table discussion on competitiveness, NCCN's CEO, Chika Mordi, while explaining the findings of a new statement to be released by his councik on Thursday, said female participation in the labour force of some Nigerian states was less than two %. "Even though we expected some gender skewering, we did not expect it to be of that magnitude," he said. However, some elements of the statement, Mordi said, were positive.