In spite of the challenge of accessing raw materials, investors and some state governments are making spirited efforts to harness the sugarcane potential in states with a view to boosting the capacity of local sugar processing companies.
The News Agency of Nigeria (NAN) reports that states such efforts are ongoing in states such as Kwara, Ogun and Oyo, with variable levels of success.
In Kwara, Mr Anu Ibiwoye, the Special Assistant to Gov. Abdulfatah Ahmed on Water and Agriculture said that concerted efforts were ongoing to promote commercial cultivation of sugarcane, particularly in the northern part of the state.
According to Ibiwoye, the Dangote Group has acquired 5, 000 hectares of land for sugar cane plantation in the state.
“Commercial sugarcane cultivation is going on in Kwara and we have two major investors involved in sugarcane cultivation,’’ he said.
He recalled that in 2013, the Dangote Group proposed to invest about 600 million dollars in sugarcane production in the state and had set out to acquire about 5, 000 hectares of land for that purpose on the banks of the River Niger in Kwara.
“The BUA Group in Lafiagi also proposed to invest about 300 million dollars in the state by acquiring the Lafiagi Sugar Company in 2008.
“This investment has translated to the cultivation of about 10, 000 hectares of land and employment of about 10, 000 people.
“In 2017, Gov. Ahmed flagged off the sugarcane season in Lafiagi at the invitation of the BUA group.
“The group had initially set for itself the target of producing about 7, 000 tonnes of sugarcane daily in order to produce 140 tonnes of refined sugar, generate 25,000, 000 litres of ethanol and 35, 000 megawatts of electricity.
“Now, we have quite a bit of the sugar produced by Lafiagi Sugar Company, a subsidiary of BUA Group, in circulation in the state, but I cannot tell what quantity is being consumed.
“But I can tell you that going by the Federal Government decision’s to reduce importation of commodities such as sugar, I can safely assume that we consume more of locally produced sugar in Kwara,’’ he said.
In Ogun, Mr Tosin Ademuyiwa, the Special Adviser on Agriculture to Gov. Ibikunle Amosun, admitted that the two sugar production companies in the state were not functioning optimally.
According to Ademuyiwa, the two sugar factories are not producing regularly due to the challenge of inadequate sources of raw materials.
“The factories buy from outside the state, mostly from the northern part of the country, in order to keep their companies functioning and when they don’t have regular supply, they would shut down sometimes during the year and use that period to continue to source for raw marterials,’’ he said.
He also said there were pockets of privately-owned sugarcane plantations located in Ifo, Ewekoro, Obafemi-Owode, Odeda, Odogbolu as well as communities in Ijebu North East and Ogun Water Side local governments.
Similarly, the Chairman of the Sugarcane Growers Association of Nigeria, Oyo State chapter, Mr Olusola Adepoju, said that the group’s sugarcane processing company had attained 90 per cent completion.
According to him, the only sugar plantation in the state is owned by cooperative societies.
“Our company is the only sugar processor in the state; the only sugar plantation in the state is also owned by our cooperative union and whatever we produce there will be supplied directly to our factory.
“But we have yet to start processing because our all our equipment have yet to arrive in the state.
“We have, however, taken delivery of about 80 per cent of the machinery and the factory is about 90 per cent completed,’’ he said.
In Ekiti, the state government said that it would evolve a sugar development policy which would include school children being encouraged to cultivate sugarcane in farmlands as part of their agriculture practical sessions.
Mr Kehinde Odebunmi, the Commissioner for Agriculture in the state, said that the sugar sub-sector had a great capacity to create to create jobs and boost the state’s economy.
He observed that the last time the state government attempted to develop a sugar policy was during the administration of former Gov. Segun Oni.
In his view, Mr Ismail Alagbada, the Commissioner for Commerce, Cooperatives and Industry in Osun, that said there was urgent need for government at all levels to boost sugarcane production in the country.
He observed that this would reduce importation of foreign sugar into the country, noting that: “We have the raw materials due to the vastness of lands available and the level of productivity by our farmers.
“But we do not have the effective processing industries. We must go back to address these challenges in order to add value to our economy.’’
But Dr Bukola Aluko, the Coordinating Director in the Ministry of Agriculture and Food Security in Osun, said that sugarcane farmers in the state needed more lands, processing plants and funds to boost production.
He, however, said that the government was presently incapable of providing the inputs now.
Meanwhile, a survey conducted by NAN has revealed that while the rate of sugar consumption is high among Nigerians, many prefer foreign brands of sugar to local ones.
Mrs Kuburat Ibrahim, a sugar vendor at Ipata Market, Ilorin, said that customers preferred foreign brands of sugar as the packaging is more attractive.
“Foreign brands of sugar can also be stored for long without losing quality and that is why customers patronise them,’’ she said.
Mr Segun Folabi of Abba Commodity stores, Kuto Market, Abeokuta, says he sells foreign brands of sugar only.
Folabi said that the foreign brands of sugar were fast selling compared to local equivalents.
Mr Hector Odubiyi, a teacher in Ibadan, also said that he had become used to consuming foreign brands of sugar.
“When I was growing up we didn’t have many options on the type of sugar in the market. My mother was a very meticulous person.
“She had taught us well on the number of cubes to put into whatever we were having as well as the specific brand,’’ he said.
Mrs Aderonke Bolajoko, a sugar dealer at the Okitipupa main market, Ondo State, told NAN that foreign brand of sugar could be affordable and better in terms of quantity and quality when compared to the local equivalent.
A sugar consumer in Akure, Miss Kosisochuckwu Ndukwe, said that she preferred imported sugar to locally made ones.
But Mr Biola Ayodele, also a consumer in Akure, said that he preferred the local sugar to the foreign brand as “the price is cheaper and readily available.
“Not all sugar vendors have the foreign ones. I am also familiar with the foreign brand, but I prefer the local one due to its availability.
“Let’s be honest with ourselves, not many people can afford to buy the foreign brand, so it’s not like they have a choice,’’ he said.
All in all, consumers note that Nigerian Sugar Industry is still largely dependent on imported raw sugar which is then refined locally to suit various consumer demands.
In the light of this observation, the Federal Government, through the National Sugar Development Council (NSDC), evolved Nigeria Sugar Master Plan (NSMP) as a road map on sufficient sugar production to create employment and generate foreign exchange.
The plan which began in January 2013, seeks to boost self-sufficiency in sugar within 10 years.
To achieve this, the government signed a pact with the three companies that import sugar —- BUA Sugar Refinery, Dangote Sugar Refinery and Flour Mills of Nigeria — to invest in Backward Integration Programme towards meeting the local demand.
BUA Group has, therefore, acquired the Lafiagi Sugar Company, now known as BUA Sugar Company, Lafiagi, Kwara, Dangote Group acquired Savannah Sugar Company, Numan, Adamawa, while Flour Mills of Nigeria established the Sunti Golden Sugar Estate in Niger.
The companies invested in new production plants, established sugarcane out-grower scheme to encourage and support farmers with credit facilities, procurement of quality inputs, and development of basic infrastructure.
Each of BUA and Dangote sugar refineries situated in Apapa, Lagos, has 1.4 million metric tonnes per annum production capacity.
The Head of Communication, BUA Group, O’tega Ogra, noted that Backward Integration Programmes were capital intensive and not something that could happen within one or two years.
However, he said that the company had made great strides in its Backward Integration projects geared to assist the country end sugar importation.
“We have a very large sugar plantation in Lafiaji, Kwara, as our Backward Integration Programme.
“The Federal Government has renewed all our Backward Integration Project agreement because it knows that we have spent so much in terms of finance, labour and other resources to get it going,’’ he said.(NANFeatures)