Site icon Nairametrics

Dangote Sugar winds up sugar business in Niger State

Dangote Sugar appoints Lawan Wabi as Non-Executive Director

Dangote Sugar Refinery Plc, one of the leading producers of refined sugar to consumers and industries in Nigeria has successfully wind up its sugar business in Niger State – under the Dangote Niger Sugar Limited.

According to a note by the company, this decision was made in an effort to cut down on deadweight cost, coming from a stretched situation from its host community which had started accumulating negative returns for the integrated sugar business.

The company noted that after a careful assessment of recent disruptions to its operation as projected in the state, due to community dispute over the land acquired in Niger, the Board of DSR in December 2020 completed all winding-up proceedings for the Backward Integration Project Company in Niger State.

READ: Dangote’s net worth declines by $1.2 billion in February

Key facts about the Project

The Dangote Niger Sugar Limited was created through an MOU between the Niger State Government and Dangote Sugar Refinery Plc, for the establishment of an integrated sugar project in the State.

The 12,000 tcd mill located on a 16,000ha land near Mambe, Lavun LGA of Niger State, had an estimated set-up cost of $450million.

READ: Dangote Sugar Refinery in Tunga to produce 450,000 MT

The Sugar project was established as an integral part of the company’s Backward Integration Project (BIP), with a 10-year sugar development plan to produce 1.5 million MTPA of sugar from locally grown sugarcane, under the Nigeria Sugar Master Plan (NSMP), a plan implemented to make Nigeria self-sufficient in sugar production.

The BIP Company in Niger State was the fourth sugar project by Dangote Sugar, after the Savannah Sugar Company – Numan Adamawa State, Lau/Tau Sugar – Taraba State and Tunga Sugar Project in Nasarawa State.

READ: Four FMCG companies lost 15.2 billion in value in a single day

What you should know

Exit mobile version