Dangote Refinery has affirmed that it is embarking on the second phase of its sugar project. The project, which would be the largest sugar plant in Africa, will cut down on sugar importation and create 30,000 jobs for Nigerian youths.
Citing Aliko Dangote’s statement, News Nigeria stated that the 100,000 hectares of integrated sugar complex which would be located in Tunga, Awe Local Government Area of Nasarawa State, will comprise 60,000hectar sugar plantation and two sugar factories with the capacity to produce 430,000 tonnes of refined white sugar per annum.
The Dangote Sugar Refinery is set to inject billions of naira into its sugar plantation expansion and setting up of factories to end the huge import bill, save Nigeria’s scarce foreign exchange, and create millions of jobs.
This project will also help the government attain its national sugar production master plan as Nigeria plans to produce about 1.5 million metric tonnes of refined sugar to meet domestic demand.
Following the inclusion of sugar to the commodities on the foreign exchange restriction list of the Central Bank of Nigeria, the government has aimed to stimulate local production of sugar through the 150,000 hectares sugar plantation to boost self-sufficiency in sugar production.
What you should know
According to the Trade Data Monitor, Nigeria’s cumulative raw sugar import from Brazil in the 2020/21 season was 1.62 million tonnes, while domestic cane sugar production has slumped from 75,000 tonnes to 70,000 tonnes, about a 6.7 percent decline within one year.
Having sufficient domestic production and supply of sugar will not only reduce the forex demand for the importation of the product but will also create jobs and send an important message about the possibility of stimulating local production and pivoting from import dependency.
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