BoI partners FUNAAB to push $3bn investment in sugar industry through credit facilities

Bank of Industry (BoI) has injected $3 billion investment funds into Nigeria’s sugar industry as part of effort to promote the entire value-chain of sugarcane production and processing.

This is going by the current economic rejuvenation and diversification of Nigerian economy from oil and other petroleum products.

It would be recalled that Olusegun Aganga, former minister of industry, trade and investment, during his exclusive interview with BusinessDay earlier this year, said Nigeria imported 97 percent of sugar she consumed and that made the Federal Government to attract more that $3 billion investment to Nigeria’s sugar industry under FG’s Sugarcane to Sugar Project.

But, the BoI, having resolved to ensure that Nigeria embraces commodity-based industrialisation that will control abnormal spending on imports of essential goods and reduce pressure on foreign exchange and balance of payment, established partnership with the Federal University of Agriculture, Abeokuta (FUNAAB) on sugarcane production and processing.

Speaking at a workshop on sugarcane production and processing, tagged “Maximising the Sugarcane Value Chain in Nigeria,” organised by FUNAAB for farmers under Ogun State Agricultural Development Project (OGADEP), Rasheed Olaoluwa, managing director, BoI, said the bank would sponsor new credit proposals aimed at promoting sugarcane production and processing.

Olaoluwa, who was represented by Raymond Adenuga, BoI Lagos state officer, said the bank was ready to promote maximisation of entire value-chain in sugarcane production and processing for national economic rejuvenation through provision of funds at a single-digit interest rate to all farmers and investors in the Nigeria’s sugar industry.

While revealing that “BoI is desired to develop a paper that will recommend the financing of the production and processing of sugarcane at not more than 9 percent interest rate per annum,” Olaoluwa urged the farmers to form themselves into co-operative groups and register joint business ventures in order for them to optimally benefit from the funds.

He reiterated the need for proper record keeping by farmers as well as the importance of transacting and undertaking financial activities through commercial banks so as to be eligible for credit facilities from the bank, just as he clarified that “the BoI does not give loans to private individuals, but only recognises corporate bodies and joint businesses.”

Speaking earlier, Victor Olowe, professor and director, Agricultural Media Resources and Extension Centre in FUNAAB, Alabata-Abeokuta main campus, said the training was timely considering the fact that the retardation in the production capacity of sugar in Nigeria had started generating concern on whether it could meet the needs of the growing population.

Olowe, who spoke among the representatives of partners, including Lafarge Africa plc; Centre for Sugarcane Value Chain Research and Development of Calvary College of Technology, Papalanto; Ogun State Agricultural Development Project (OGADEP); All Farmers’ Association of Nigeria (AFAN), however, pledged commitment of the partners in driving development of sugarcane value-chain in accordance with Federal Government’s policy on sugar production.