Farmers rake in N1bn yearly through sugar masterplan – FG
The Federal Government through the National Sugar Development Council has revealed that the out-grower scheme under the Nigeria Sugar Master Plan pays about 535 farmers across the country over N1bn annually.
It disclosed this in a report on the Nigerian Sugar Industry put together by the NSDC, stating the achievements of the sugar master plan.
In 2008, the Federal Government directed the National Sugar Development Council to develop a roadmap for the attainment of self-sufficiency in sugar within the shortest time possible. In compliance with the directive, the council came up with the Nigerian Sugar Master Plan.
Outlining some key achievements of the master plan in the report, the Executive Secretary of the NSDC, Kamar Bakrin, told senior journalists in Lagos that the council, through the master plan, had been able to grow the total installed capacity of sugar refineries in Nigeria to three million metric tonnes.
He noted that through the sugar master plan, the government has “attracted $1bn worth of investments into the backward integration programme; established out-grower schemes, paying 535 farmers over N1bn per annum; drove investments in greenfield projects; and established the Nigerian Sugar Institute to drive research and development in the sugar sector.”
He said sugar is an important economic commodity whose production can be an important model of industrialisation and economic development.
“Cultivating and processing sugar cane provides livelihoods for a large number of people. The industry generates secondary economic activities in transport, equipment manufacturing, and retail,” Bakrin stated, adding that “it catalyses investments in rural areas such as roads, power, education, and health infrastructure.”
He said the NSDC is committed to driving the sugar sector to achieve self-sufficiency within eight years, as the council is taking deliberate action to accelerate local production.
“We are raising a pool of appropriate funding of the right quantum, cost, and tenor to create capacity. We are driving more aggressive expansion by existing players, the entrance of credible local and global business groups, and establishment of commercial sugar cane growers.
“Internally, we are upgrading capacity for training manpower for the industry, creating local varieties, multiplying seed cane, and driving best practices through extension services,” Bakrin stated.
He noted that investing in local production of sugar is attractive for many reasons, stressing the existence of a large and growing domestic demand which is mostly import-dependent, coupled with an export market within Africa.
“The Nigerian sugar market is valued at $2bn with access to a $7bn Africa market. The macroeconomic environment, especially the currency exchange rate, has made local production more competitive and importation more challenging.
“The economics are compelling with high Net Present Value and Internal Rate of Return at attainable scale and available financing that matches the business need. It is operationally feasible with access to land in secure parts of the country, and available global expertise to support local projects.
“There is a strong incentive framework and the government is committed to creating investment-friendly legislation. The sector is future-proof due to a host community integration model that ensures sustainability as well as the wide variety of high-value products that can be produced such as ethanol, bioplastics, packaging materials, etc,” he stated.
