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Nigerian companies are increasingly taking advantage of the backward integration policy of the Federal Government, by making investments towards the attainment of local production.
Nigeria’s capacity for sugar production got a significant boost yesterday as Flour Mills N50 billion ($138.9m) sugar production facility in Niger state was commissioned by President Muhammadu Buhari.
The facility is expected to improve the company’s capacity towards locally produced and refined sugar.
It will as well contribute towards gradually eliminating the need for importation of sugar which according to the National Sugar Development Council (NSDC) cost Nigeria $516 million in 2016, as the country continues to struggle with inability to scale up local production.
“This project could not have come at a better time. As Nigeria makes its journey out of recession and the economy continues to show considerable progress,” Muhammadu Buhari, the president of Nigeria said at the commissioning.
“The level of work and magnitude of investment that we are witnessing here today is a clear demonstration that our policies on economic diversification are on the right path. On that note, I must congratulate the entire members of board, the management and staff of this great company for such a laudable project that will undoubtedly reposition Nigeria as a leading player in the global food market,” he concluded
The Sunti Golden Sugar Estate (SGSE) Limited is a wholly owned subsidiary of Flour Mills of Nigeria (FMN) Plc, and comprises of a cane production area and sugar factory.
The facility has been described as FMN’s single biggest investment (in Nigeria) since inception in 1960; a representation of its vision for agro-industrial transformation in the country.
John Coumantaros, chairman, Flour Mills of Nigeria Plc said at full capacity, the estate is expected to produce one Million tons of Sugarcane which roughly translates into 100,000 metric tons of sugar yearly and this locally produced sugar is going to save Nigeria 100 million dollars in foreign exchange every year.
Okomu Oil Palm Company Plc on Wednesday( same day as the commissioning of the Sunti Golden Sugar Estate by FMN) commissioned its extension two of 15,076 hectares palm oil plantation with a plan to install a N18billion ($50 million) milling facilities with the capacity to produce 30 tons per hour.
When the milling facility in addition to the 30 tons per hour already installed in the old plantation is completed, it would improve the production capacity of the company to 80,000 metric tons per annum as against the current 40,000 metric tons in the next five years.
The new extension has provided employment to about 2000 persons and will increase it to over 4000 in the next few years.
Commissioning the oil palm plantation located at about ten communities in Ovia North-East/Uhunmwode local government areas , of Edo State, Godwin Obaseki, the state governor, assured that his administration will be pushing for further reforms to support the oil palm industry in Nigeria by collaborating with Ondo and Cross River state governors to work with the oil palm industry, particularly with the Plantation Owners Forum of Nigeria (POFON) and the federal government to create an oil palm council for Nigeria.
Flour Mills of Nigeria with a market capitalization of N98.015 billion closed trading yesterday at N37.35 per share on the Nigeria Stock Exchange (NSE), while Okomu Oil Palm Plc with market capitalization of N68.682 billion traded at N72.00 per share, data from Bloomberg show.
CALEB OJEWALE, in Mokwa
