Sugar masterplan: FG to save $65.8 million on ethanol import, create over 100,000 jobs

Recall the NSMP which was initially set up in 2010, is designed as a roadmap for the sugar industry to enable the nation to attain self-sufficiency in sugar production.

The move was further given a boost when the three major sugar companies in Nigeria, Dangote Sugar, BUA sugar refinery limited, and Golden Sugar Company signed a backward integration agreement to ensure local sugar production and also, look toward exporting in the nearest future.

While speaking on the development, the Minister of Industry, Trade and Investment, Niyi Adebayo, revealed that apart from reducing the importation of sugar and creating jobs, the government was targeting to save $65.8m on ethanol import and generate 400 megawatts of electricity.

Nigeria's inability to have a stable sugar production industry has made the country lose out on the manufacturing of other core products like ethanol which is manufactured from excess sugar.

As of 2019, at N400 per litre, Nigeria consumed about 400 million litres of ethanol, which means ethanol worth N160 billion is imported annually.

At the moment, cassava remains the predominant source product for ethanol production, a process that barely covers over 4 percent of total demand.

These issues lend credence to the need for Nigeria to achieve the Sugar master plan as it will give the needed boost to sugar manufacturers to increase production and also, diversify the resource base for ethanol production.