Dangote Sugar initiates plan to resolve high cost of sugar in Nigeria

Dangote Sugar targets increased production from locally grown sugarcane amid high cost of sugar in the countryThe company, which recently achieved a N1 trillion market cap, is targeting a 1.5MT annual yield from indigenous sugarcaneThe ambitious plan is part of the company’s effort to reduce the recent rising cost of sugar in the countryLegit.ng journalist Victor Enengedi has over a decade’s experience covering energy, MSMEs, technology and the stock market.

Dangote Sugar Plc has stated that it plans to achieve an annual production milestone of 1.5 million metric tons of sugar sourced from locally cultivated sugarcane.

Ravindra Singhvi, the Chief Executive Officer of Dangote Sugar, revealed this ambition while elaborating on the company’s 2023 full-year performance during a presentation to the Nigerian Exchange over the weekend.

Dangote Sugar is working towards achieving 1.5MT annually from locally grown sugarcane processed at its sugar refineries.
Photo credit – Dangote Sugar, Pond5
Source: UGCThis follows the Federal Government’s Backward Integration Policy regarding sugar, poised to change Nigeria’s sugar production landscape substantially.

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It would be recalled the company recently joined the elite club of companies worth N1 trillion in market capitalisation on the Nigerian Exchange Limited.

Achieving 1.5 million metric tons of sugar According to the Independent, Singhvi said that Dangote Sugar is working towards achieving 1.5MT annually from locally grown sugarcane processed at its sugar refineries across the country.

Singhvi said:

“In line with the core objective of the National Sugar Master Plan which is for Nigeria to attain self-sufficiency in sugar production, Dangote Sugar is working on enhancing its existing refinery operations in Numan, Adamawa State, as well as developing its greenfield sites at the Nasarawa Sugar Company Project, amongst other sites. The Company intends to achieve 1.5MT annually from locally grown sugarcane.” Through the minister of trade and investment, the federal government had engaged Dangote Sugar and other sugar manufacturers in efforts to reduce the commodity’s price.

Planned merger with NASCON, Dangote RiceSinghvi emphasised the importance of the planned merger involving Dangote Sugar, NASCON, and Dangote Rice Limited, highlighting it as a pivotal moment in the company’s evolution.

He stated that this strategic initiative underscores their dedication to expansion and advancement, positioning the company to capitalise on forthcoming prospects within the food industry.

Singhvi mentioned that the company has submitted an application to the Securities and Exchange Commission seeking approval for the merger and remains committed to ongoing discussions with regulatory bodies.

He expressed confidence that the proposed merger will foster enduring success and deliver enhanced returns to all stakeholders in the long term.

Dangote Sugar Refinery Plc holds a prominent position as a top sugar processing entity in Nigeria, involved in refining, distributing, and marketing granulated sugar to key stakeholders in the food and beverage, pharmaceutical, and skincare sectors, along with various distributors.

Dangote Sugar employs 7,000 annuallyIn related news, Legit.ng reported that no fewer than 7,000 people are employed annually at Dangote Sugar Refinery in Numan, Adamawa State, courtesy of the Backward Integration Project (BIP).

Bello Dan-Musa, group general manager of operations for the company, disclosed this during a media tour of the facility in Numan.

Dan-Musa said thousands of young people work for the company directly while more than 7,000 people were employed at its busiest point during the production season.

The GMG described Dangote Group as Nigeria’s second-largest employer of labour after the government.

Source: Legit.ng