Sugar industry stronger as new mini firms emerge

Nigeria’s sugar industry has received a big boost as new firms in the category of small and medium scale enterprises (SME) have emerged.

These firms were basically established by sugarcane farmers’ cooperative societies. They include Oyo State Farmers Union; Goro Farms in Goronyo, Sokoto State; Greenstar Farms in Gumi, Zamfara State, and Takorankadi, Kebbi State.

Others include McNichols Sugar Company (Papalanto mini factory), Ogun/Ondo Farmers, and Bobutu Sugar Mills/Ogun State Sugarcane, among others, Latif Busari, executive secretary, National Sugar Development Council (NSDC), disclosed this during a workshop held in Abuja, recently.

According to Busari, Oyo State Framers Union is expanding its cane fields to 200 hectares (ha), while Goro Farms is strengthening 10 hectares of cane nursery establishment to achieve a 350 hectare-farm. Greenstar is also expanding its 10ha to attain 350ha within the shortest possible time.

Again, Takorankadi is also expanding 10ha to reach 150ha, while McNichols is diversifying its 6ha to hit 100ha. The Bank of Agriculture (BoA) is financing crop loans and machinery acquisition, Busari said.

There are also some green-field projects going on around the country. These projects are carried out by Confluence Sugar Company, Ibaji, Kogi State, Crystal Sugar Mills, Hadejia, Jigawa State, and Unicane Industries Limited located at Dangerri, Kogi State.

Both Crystal Sugar and Confluence Sugar have already established 50ha and 100ha cane nursery, respectively. Crystal Sugar has almost completed factory refurbishing and plans to test-run in 2015.

The backward integration policy (BIP) of the Federal Government has attracted a number of investors into the once neglected sugar industry. Sugar is one way of diversifying Nigeria’s economy, which has become essentially dependent on oil over the years.

Economic diversification through manufacturing has become most critical now than ever as government’s revenue, 85 percent of which comes from oil, continues to nosedive. Sugar has so become key to Nigeria’s inclusive growth as it brings about the growth of other industries like ethanol.