The Nigerian federal government has formally commissioned a $73 million infrastructure intervention project aimed at fostering the development and productivity of Nigeria’s sugar sub-sector.
The sugar infrastructure programme named ‘Presidential Intervention on Irrigation Infrastructure to Accelerate Sugar Backward Integration Programme Projects’, is expected to support the development of irrigation facilities on 10,000 hectares of sugar plantations located at six Backward Integration Programme (BIP) sites across the country’s sugarcane production strongholds including, Numan in Adamawa State; Sunti in Niger State; Lafiagi in Kwara State; and Toto/Tunga in Nasarawa State.
Niyi Adebayo, minister of industry, trade and investment, said at the inauguration held at the State House in Abuja, Nigeria’s capital city, that the project is in line with the federal government’s commitment to diversify the base of the economy through the formulation of favourable policies, provisions of technical support, creation of a business-friendly environment and provision of incentives to attract more investments into the industry.
Adebayo, who spoke on behalf of President Muhammadu Buhari, noted that the objective of the programme was to significantly improve the country’s sugarcane yield in accordance with the National Sugar Development Council (NSDC) master plan.
He explained that the strategic intervention is aimed at ensuring that Nigeria becomes self-sufficient in sugar production and possibly a net exporter of sugar, thus saving the country the large bill that it presently incurs in foreign exchange on the importation of sugar.
The minister also emphasised that the move would enable the country’s leading sugar producers namely, Dangote, BUA and Flour Mills, to expand capacity and capitalise on the import substitution opportunity within the sugar market.
He added that the Central Bank of Nigeria (CBN) is also involved in the provision of required funding for the project.
Zacch Adedeji, executive secretary of the National Sugar Development Council (NSDC), explained that the intervention was part of the government’s determination to provide an enabling environment for private investments to thrive and flourish in the country.
Adedeji explained further that preliminary activities, including identification of the specific project sites for each operator, which include framework for design and engineering services for the in-field and bulk water supply systems, project management and maintenance specifications, adoption of a business model and costing, among others, have been concluded long before the launch of the initiative.
Abdullahi Sule, Nasarawa State governor, also at the inauguration said Nigeria has both the human and natural resources to be among leading sugar producing countries in the world.
According to him, sugar has a value chain with the potential of generating more revenue for Nigeria to boost its economy.
Sule, who also serves as the chairman, Forum of Sugar Producing States, encouraged all critical players in the sector to intensify their efforts towards actualising the sugar masterplan.
“We all have to roll up our sleeves and match our words with concrete actions to enable us achieve our desired objectives in the sector,” he stated.
