From Atiku Sarki, Abuja
The National Sugar Development Council (NSDC) has assured to deliver over 835,000 metric tonnes(MT) of sugar annually under its pipeline of 10 greenfield projects.
According to the Council, the projects when fully operating, will raise Nigeria’s annual sugar production beyond 2 million MT and save about $2.1billion of foreign exchange every year.
The Executive Secretary of the NSDC, Kamar Bakrin disclosed this when the new leadership of Commerce and Industry Correspondents Association of Nigeria (CICA) paid him a courtesy at the Council Headquarters in Abuja explained that the projects form a central part of the Council’s $7.1 billion, 10-year program to raise Nigeria’s annual sugar production beyond 2 million MT and save about $2.1 billion in foreign exchange every year.”
Highlighting on the progress so far he said the 10 greenfield projects have moved beyond concept with the following already in place include Credible Promoters identified for all projects143, 478 hectares of land secured55, 500 TCD of planned milling capacityIntegrated design and each estate also designed to produce sugar, ethanol, and power to ensure they meet bankable standards.
He also said that all the projects are undergoing independent technical reviews.
“Three Interventions behind the 2 Million MT Target. The greenfield projects are one of three key interventions anchoring the program. The others are optimizing existing estates and accelerating the expansion of incumbent operators.
Together, the three are designed to close the production gap as follows;Existing estates: about 100,000 MT annually.Incumbent operators: 1.22 million MT annually, equivalent to about two-thirds of current national demand.
Ten greenfield estates: about 835,000 MT annually at full capacity.Combined, 13 projects are projected to produce more than 2 million MT of sugar yearly, above current domestic demand.Farmers at the Heart of Cane Supply” He said.
“The NSDC Boss further explained that his Council is also working with farmers around existing mills to increase cane supply, with 11,000 hectares targeted for farmer-grown sugarcane.
So far he said, 7,000 hectares (64 percent of the target) have been identified with partners in Kwara, Niger, and Adamawa, and the initiative is expected to supply 880,000 MT of cane to existing mills and produce about 88,000 MT of sugar annually.
He observed that financing the 10-year program requires $7.1 billion, made up of $5 billion in debt and $2.1 billion in equity.
“The debt component he is expected to come from:Export credit agencies: about $3 billion Development finance institutions: $1.75 billion Local development finance institutions: $250 million Building the Skills and Seed Pipeline. ” He stated.
The Executive Secretary of the Sugar Council said to address the sector’s shortage of quality planting materials and technical expertise, the Council has strengthened the Nigeria Sugar Institute (NSI), to provide training and extension services, planting materials and project evaluation and estate support Economic and Environmental Gains. Noting that successful implementation will deliver benefits well beyond sugar production.
“The NSDC projects that domestic production of sugar and ethanol will also save about $2.1 billion in foreign exchange annually, Create 110,000 direct and indirect jobs and impact more than one million livelihoods across the value chain, Grow the GDP of host communities for more than 100 percent among other things.
He, however said his Council is moving from policy commitments to measurable implementation, with estate performance to be monitored physically and through satellite technology.
He, therefore, commended the media in reporting the activities of Council to the public and assured working and Partner with the new leadership of CICAN.
