Sugar Masterplan: 3 indigenous firms invest $1 billion in backward integration program

The indigenous firms, BUA Foods Plc, Dangote Sugar (DSR) and Flour Mills of Nigeria (FMN) which are all important stakeholders in the sugar processing industry in Nigeria led the investment rounds.

The NSMP was introduced by the Federal Government in 2012 as a framework to aid the implementation of a 10-year master plan to revamp the sugar sector. 

The plan also projected that by 2020, the demand for sugar in Nigeria will hit the 1.7 million metric tonnes (MMT) mark.

To achieve this record, there was a projection that Nigeria would have to establish about 28 sugar factories and initiate the cultivation of sugar on about 250,000 hectares of land within the next 10 years.

The NSMP which is modelled as a policy plan has four major objectives which aim to push for more impact in the sugar production industry.

The objectives are: 

-For Nigeria to attain self-sufficiency in sugar production.

-To stem the rising tide of sugar importation

-To create job opportunities for Nigerians

-And to generate electricity and production of ethanol for industrial purposes.

The Executive Secretary of the National Sugar Development Council (NSDC), Zacch Adedeji, noted that significant progress has been made in achieving the aims of the NSMP although the objectives have not been fully achieved.

Adedeji stated: “NSMP has nonetheless forced indigenous companies to significantly raise investments in backward integration programme (BIP) in sugar plantation farming and processing”

This has been evident in the FG’s decision to further extend the 10-year implementation phase of the master plan which was to end by this year, 2022, by another 10 years - 2023 - 2033, to ensure that the intended aim is achieved.