Chairman of Dangote Sugar Refinery Plc, Aliko Dangote has said that the company is planning to produce 700,000 metric tonnes of refined sugar from locally grown sugarcane in the next four years through its Backward Integration Programme (BIP).
Speaking at the company’s 18th Annual General Meeting (AGM) in Lagos, Dangote said that in alignment with the Federal Government’s policy guidelines, the company would continue to focus on, and enhance its Backward Integration Project by deploying and reviewing project strategies to ensure efficient delivery.
This is coming even as the Nigerian Exchange released the company’s first-quarter result for 2024, indicating an increase of 20.1 per cent in its revenue to N122.7 billion.
According to Dangote, the planned 700,000 metric tonnes would meet 50 per cent of the current market demand for refined sugar.
He said that the 10-year sugar development plan to produce 1.5 million MT of sugar per annum from locally grown sugarcane remains an important roadmap to the attainment of the Company’s objectives.
“Our focus is on achieving the revised targets set for DSR Numan Operations, Dangote Adamawa Sugar Limited, and Nasarawa Sugar Company Limited, while we are hopeful that the Taraba State Government will resolve the community payment issues that have led to the stoppage of activities at the Dangote Taraba Sugar Limited, Lau/Tau project.
“…During the year under review, despite the challenges we were faced with, the company significantly scaled up investment in the Backward Integration Projects with the ongoing expansion of the DSR Numan factory refining capacity from 3,000TCD to 9,800TCD year-end.
“The factory will be increased with an additional 5,200TCD to 15,000 TCD (tonnes of cane crushed per day) eventually to meet the need in view of the massive land development activities also going on at the site. The aim is to achieve 24,200 hectares in total by the year 2029.”
Dangote emphasised that despite the adverse impact on the business environment by the continuous increase in the inflationary trend, lack of liquidity and FX to fund the company’s equipment import among others for the backward integration projects, concerted efforts are ongoing to secure the needed funds for the development of the Nasarawa Sugar Company Limited project at Tunga in Awe Local Government Area of the state.
“This will enable the company to put in place the needed infrastructure for the eventual commencement of full-scale production and ensure that the Dangote Sugar Backward Integration ‘Sugar for Nigeria Project’ is achieved. In the end, over $700 million investment would be committed to the Backward Integration Programme.”
He said that the Dangote Sugar (Ghana) Limited, was established as a subsidiary of the Company during the year under review, in line with the plan to expand its presence in the sugar industry across Africa.
