Dangote targets 40% sugar import substitution with Phase II project
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The management of Dangote Sugar Refinery Plc has assured that progressive steps are underway towards the construction of its 100,000-hectare Phase II sugar project, expected to reduce the importation of sugar into the country by 40 percent.
The development, according to the leading sugar refinery brand in sub-Saharan Africa, is also aimed at providing employment opportunities for over 30,000 Nigerians.
Citing a report by Trade Data Monitor, the world’s top supplier of market statistics, the company noted that Brazil’s cumulative raw sugar exports to Nigeria in the 2020/21 season stood at 1.62 million tonnes, while domestic cane sugar production declined from 75,000 tonnes to 70,000 tonnes, about 6.7 percent reduction within one year.
The company whose refining facility at Apapa is considered the largest in sub-Saharan Africa pointed out that the data released by Trade Data Monitor is a reflection of the company’s significant contribution to reducing sugar importation through its backward integration projects.
Commenting on the project, Aliko Dangote, president, Dangote Group, said the integrated sugar complex located in Tunga, Awe Local Government Area of Nasarawa State, comprises 60,000 hectares of sugar plantation and two sugar factories with the capacity to produce 430,000 tonnes of refined white sugar annually.
In another development, the Nigerian Ports Authority (NPA)’s shipping data disclosed that bulk carriers, Aquarius Honor and Ocean Crown, would be at Greenview Development Nigeria Limited (GDNL), a subsidiary of Dangote Group, to offload 45,850 tonnes and 46,750 tonnes of raw sugar, respectively.
The data revealed that GDNL took delivery of 187,000 tonnes from four vessels in May 2022, following high demand for the sweet commodity in the food and drinks sector.
“At the terminal, Common Galaxy came with 48,800 tonnes; Bonny Island, 47,200 tonnes; Chayanee Naree, 46,000 tonnes, and Karteria Bluestar, 45,000 tonnes. Also, in April, the terminal took delivery of 91,600 tonnes when Unity Bluestar offloaded 47,200 tonnes and Eco Atlantic, 44,400 tonnes,” the data stated.
The NPA shipping data disclosed that 67,000 tonnes of sugar were offloaded at ENL Consortium and GDNL, adding that the ENL terminal took delivery of 20,000 tonnes from Doro, while Baltic Mantis discharged 47,000 tonnes at GDNL.
It further disclosed that Genco Picardy, a vessel sailing under the flag of Marshall Islands, arrived with 46,500 tonnes in February, while two vessels offloaded 101,422 tonnes in January. NPA also noted that the vessels, Desert Calm and Pauline, berthed with 55,352 tonnes and 46,070 tonnes, respectively, during the same period.
According to findings from Index Mundi, a commodity trade portal, Nigeria has already imported 965,000 metric tonnes of raw in 2022, underpinned by the country’s growing demand for sugar-added foods and beverages.
Though sugar is currently on the list of commodities on the foreign exchange restriction list of the Central Bank (CBN), Nigeria imported $1.82 billion beet sugar, sugar syrups, and other sugar confectionery in the last two years.