Dangote Signs $450mn Sugar Production MoU With Niger State

In a move for self-sufficiency in sugar production through the Nigerian government’s backward integration policy, Dangote Group yesterday signed a Memorandum of Understanding (MoU) with the Niger State Government for the establishment of a US$450mn state-of–art and fully integrated sugar complex.
The State Governor, Abubakar Bello, signed for the government while the President of Dangote Group, Aliko Dangote, endorsed the agreement on behalf of Dangote Sugar Refinery PLC in Minna, the state capital.
Details of the project made available to the NAN (News Agency of Nigeria) indicates that it would involve the development of a sugar cane plantation of about 16,000 hectares or 160 sq km.
On completion, according to the President of the Group, the project will generate over 15,000 jobs in the state, and bring about a complete economic turn-around.
Dangote already operates a sugar refinery and a sugar cane plantation in Adamawa state.
The company, which is currently operating an out-grower scheme in rice production in a number of states, also has Africa’s largest sugar refinery in Lagos.
Okechukwu Enelama, the Minister of Industry, Trade and Investment, who was represented by Alhaji Aminu Bisala, noted that Dangote is the biggest private sector supporter of the Nigerian economy and Federal Government policies.
He said the government was comfortable with the numerous investment efforts of the Dangote conglomerate.
Aliko Dangote said his investment was informed by his company’s firm belief in the potentials of the Nigerian economy, adding that the new outlay will add value and create jobs for Nigerians.
In a brief remark, shortly after signing the MoU in Minna, he also said that the project would be supplemented by an out-grower scheme to produce 12,000 tons of sugar cane per day.
Also speaking, Group Managing Director of Dangote Sugar, Abdullahi Sule, said the MoU would transform the economy of Niger State and that of Nigeria as a whole.
He said the integrated sugar mills will have the capacity to produce 160,000 metric tons of raw sugar, adding that Dangote Sugar Refinery is developing a sugar backward integration plan through the production of 1.5 metric tons per annum over 10 years in Nasarawa, Adamawa, Kogi, Kwara, Taraba and Niger states.

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