The federal government has tasked Dangote Sugar Refinery (DSR) to scale up its annual production capacity to 600,000 metric tonnes by 2030, as Nigeria continues to grapple with a significant gap between local output and national consumption.
According to a statement on Sunday, John Enoh, minister of
state for industry, gave the directive during a visit to the DSR complex in
Numan, Adamawa state, as part of ongoing inspections of sugar projects
nationwide.
The visit, which included Kamar Bakrin, executive secretary
of the National Sugar Development Council (NSDC), aligns with the federal
government’s push to accelerate Nigeria’s attainment of self-sufficiency in
sugar production under the Nigeria Sugar Master Plan.
Nigeria consumes about 1.8 million metric tonnes of sugar
annually, far above current local production levels — a deficit the government
says must be urgently addressed.
Enoh said as one of the three major operators in the sector,
DSR is expected to play a leading role in closing the supply gap.
“DSR is a very big player in the industry. Our circumstances
in this sector will continue to depend on what DSR does,” the minister said.
He added that the company must not only meet the 600,000MT
target by 2030 but also sustain the output level.
Enoh said discussions around the sugar industry have
featured prominently at meetings of the federal executive council (FEC), noting
that President Bola Tinubu has repeatedly emphasised the need to develop the
sector.
‘NIGERIA’S SUGAR MASTER PLAN REQUIRES FASTER EXECUTION ‘
The minister described current production levels as
inadequate, stressing that the goals of the Nigeria sugar master plan now over
a decade in implementation require faster execution.
“The programme is on course, but it needs to be accelerated
much more,” he said.
“I mean, there is a commitment on the part of Dangote Sugar
to be able to increase its annual production to about 600,000 metric tonnes by
2030 and government is available and ready to work with them in terms of what
needs to be done to push them over the line.
“We are aware that there are issues that remain nagging and
one of those issues has to do with affordable long term finance, what is called
patient capital.
“We are looking to what extent government can get involved
to assist and enable them raise the required capital.”
Enoh commended the NSDC for its oversight role and the
Dangote Sugar team for ongoing investments, particularly the new 6,000
tonnes-per-day (TCD) plant observed during the visit.
He said the scale of infrastructure and level of project
development at the facility reflect commitment to the objectives of the
backward integration programme.
Enoh, however, identified access to affordable long-term
financing often described as “patient capital” as a major constraint to scaling
production.
“We are looking at the extent to which government can
support operators to raise the required capital,” he said.
Speaking on behalf of the company, Olakunle Alake,
vice-president of the Dangote Group, said the firm remains committed to
increasing capacity and meeting the 600,000MT production target within the
timeline.
Alake said the company would continue to invest in expanding
its operations, including plantation development and processing infrastructure.
During the visit, the delegation inspected the factory
expansion site, sugarcane fields, haulage systems, and processing units,
including mills, boilers, and evaporators, as well as the packaging section of
the refinery.
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