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Dangote Sugar Refinery (DSR) is charting its own course towards bolstering Nigeria’s sugar industry alongside the National Sugar Master Plan initiated in 2012. The company’s strategic blueprint, dubbed “Dangote Sugar for Nigeria Master Plan,” aims to ramp up refined sugar production to 1.5 million metric tonnes per annum from locally cultivated sugarcane.
Through its backward integration program (BIP), DSR is committed to fostering a robust sugarcane-to-sugar value chain in Africa’s most populous nation. Progress is evident, particularly at the Numan and Tunga plants, where work is advancing swiftly.
The impetus for this initiative traces back to 2012 when former President Goodluck Jonathan launched the Nigerian Sugar Master Plan (NSMP), aimed at attaining sugar self-sufficiency and curbing raw and refined sugar imports. DSR, led by Alhaji Aliko Dangote, emerged as a key player in driving this agenda forward.
Twelve years on, Dangote Sugar has exceeded expectations, securing over 120,000 hectares of land across Adamawa, Nasarawa, and Taraba states for its sugar BIP projects. A significant portion of these hectares has already undergone clearing and planting, with some progressing to secondary stages.
By developing these plantations, DSR is poised to end Nigeria’s reliance on imported raw sugar, which incurs substantial costs annually. In 2020 alone, raw sugar imports amounted to $433 million, underscoring the urgency of domestic production. With Nigeria grappling with foreign exchange challenges, reducing raw sugar imports could alleviate pressure on forex reserves.
DSR’s investments extend beyond land acquisition, encompassing machinery, infrastructure, manpower, and community development initiatives. The company’s commitment surpasses $700 million, reflecting its confidence in Nigeria’s economic potential.
The transformative impact of DSR’s endeavors is tangible, with over 12,000 direct and indirect jobs created and an extensive outgrower scheme empowering local farmers. These investments offer a lifeline to rural communities amidst economic hardships.
The company’s expansion plans include upgrading existing facilities, such as the Numan factory, to enhance sugar production capacity. Upon completion, the upgraded plant is expected to generate 32 megawatts of electricity, further bolstering Nigeria’s energy landscape.
DSR’s strides in Nasarawa are equally noteworthy, with infrastructure development progressing steadily. The installation of irrigation systems and commencement of commercial development underscore the company’s commitment to operational excellence.
Tax contributions form a crucial part of DSR’s commitment to national development, with billions of naira remitted in taxes over the years. Aliko Dangote reaffirmed the company’s dedication to creating hundreds of thousands of jobs upon completing its BIP projects, signaling a bright future for Nigeria’s sugar industry.
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