Dangote to save Forex with 40 percent sugar import substitution to boost job opportunities

*Dangote Sugar Refinery Plc discloses the company plans to significantly reduce importation of sugar into Nigeria by 40 percent in order to ensure the employment of over 30,000 youths in Nasarawa State

Isola Moses | ConsumerConnect

The Management of Dangote Sugar Refinery Plc has resolved to significantly reduce the importation of sugar into the country by 40 percent, to ensure the employment of over 30,000 youths.

ConsumerConnect reports Alhaji Aliko Dangote, President of Dangote Group, recently explained to reporters, that the conglomerate is embarking on Phase II of its Sugar project.

Dangote also disclosed the project would cover over 100,000ha to make the sugar plant the largest in Africa.

He further noted the integrated sugar complex to be located in Tunga, Awe Local Government Area of Nasarawa State, comprises 60,000ha sugar plantation and two sugar factories with the capacity to produce 430,000 tonnes of refined white sugar per annum.

Meanwhile, the Nigerian Ports Authority’s (NPA) shipping data revealed that Auarius Honor and Ocean Crown would be at Greenview Development Nigeria Limited (GDNL), a subsidiary of Dangote Group to offload 45,850 tonnes and 46,750 tonnes respectively.

Following high demand in the food and drinks sector of the economy, GDNL took delivery of 187,000 tonnes from four vessels in May this year.

At the terminal, Dangote Group said Common Galaxy came with 48,800 tonnes; Bonny Island, 47,200 tonnes; Chayanee Naree, 46,000 tonnes, and Karteria Bluesrar, 45,000 tonnes.

In April 2022, the terminal took delivery of 91,600 tonnes when Unity Bluestar offloaded 47,200 tonnes and Ecoatlantic, 44,400 tonnes, the conglomerate noted in a statement.

The NPA shipping data  indicated that 67,000 tonnes of sugar were offloaded at ENL Consortium and GDNL, noting that the ENL terminal took delivery of 20,000 tonnes from Doro, while Baltic Mantis discharged 47,000 tonnes at GDNL.

It added that Genco Picardy arrived with 46,500 tonnes in February, while two vessels offloaded 101,422 tonnes in January, stressing that Desert Calm berthed with 55,352 tonnes and Pauline, 46,070 tonnes. Finding from Index Mundi, a trade portal revealed that the country has already imported 965,000 metric tonnes of raw this year.

Besides, Nigeria imported $1.82billion beet sugar, sugar syrups, and other sugar confectionery in the last two years.

Dangote Group stated that Sugar is currently on the list of commodities on the foreign exchange restriction list of the Central Bank of Nigeria (CBN).

Aside from this, the company said the statistics from Trade Data Monitor (TDM) based on the Brazilian Foreign Trade explained that Brazil exports rose from $458.9 million in 2019 to $702.8 million in 2020.

According to TDM, Brazil’s cumulative raw sugar exports to Nigeria in 2020/21 season was 1.62 million tonnes, while domestic cane sugar production has slumped from 75,000  tonnes to 70,000 tonnes, about 6.7 percent decline within a year.

The country had projected to meet 800,000 tonnes target of raw sugar production by 2022 as demand by the food and drink manufacturing and retail markets is on the increase.

However, the Group noted that Nigeria could not meet up to five percent target as data from National Sugar Development Council (NSDC) revealed that in 2016, local production of refined sugar was 25,000 tonnes; 2017, 20,184 tonnes; 2018, 14,918 tonnes and 2019, 28,597 tonnes; 2020, 75,000 tonnes and 2021, 75,000 tonnes.