FMN’s Inclusive Strategy to Make Nigeria Self-sufficient in Sugar Production

Kayode Tokede was among select journalists who undertook a tour to Sunti Golden Sugar Estate, a 30-kilometer east of Mokwa on the bank of Niger River in Niger State where one of the subsidiaries of Flour Mills of Nigeria Plc (FMN), Golden Penny Sugar factory, has 22,000 ha of sugarcane land. Among others, the tour was meant to decipher what makes the company outstanding among its peers in sugarcane production and maintaining its position as the leading company inthe Backward Integration Program (BIP) of the Federal Government

In a move to engender world-class competitiveness in sugar production and also ensure Nigeria’s self-sufficiency sugar production, FMN, one of Nigeria’s leading food and agro-allied companies, has maintained its position as leading company to reckon with over the years.

While there is a clear need for greater diversification of the Nigerian economy to promote quality growth, economic transformation and employment, a company like FMN has been able to position itself at the forefront of Backward Integration Program (BIP) through investments in local production and engaging the hosting communities.

The strategy of the business expansion model of FMN, which has over the years diversified into Fast- Moving Consumer Goods (FCMG), is not only organic growth but acquisitions and partnerships, the company through its Golden Sugar Company has made the largest investment on a sugar BIP under the Nigeria Sugar Masterplan Plan (NSMP).

Part of the reason the company in February 2022 was adjudged by National Sugar Development Council (NSDC) as the best performing BIP as it expands investments for the sustainable development of the Sugar industry.

The company’s subsidiary, Golden Sugar Company with an investment of over N73billion developed Sunti Golden Sugar estates and collaborating with 36 communities in job creation, skill development and securing the plantation from outside encroachment.

FMN investments at Sunti, Niger State, has significantly benefitted neighbouring communities who are feeling the impact through numerous community improvement projects such as access roads, electrification projects, primary healthcare and educational facilities, and expanded youth job opportunities.

FMN’S Sunti Golden Sugar Estates is the first and only Greenfield investment under the NSMP currently producing raw sugar. Sunti Sugar Estates which was commissioned by President Muhammadu Buhari in March 2018 is 22,000 hectares of irrigable farmland and a Sugar mill that process 4,500 metric tons of sugarcane per day.

Sunti Golden Sugar Estates is the most state-of-the-art operational sugar production facility in Nigeria and located in strategic location for all-around year sugarcane planting.

The company with ,500 seasonal workers t of which 350 are female that specialize in planting sugarcane and 1,500 workers specialize in crop maintenance and irrigation. The target upon completion of the project is 7,000 direct and 50,000 indirect jobs across the value chain.

The farm has three kinds of irrigation systems that include sprinklers, pivots, and furrow managed by the workers on the daily basis and this is to ensure that the sugarcane plantations have access to water round the year for robust yield and steady growth.

As gathered during the tour, the management realized that the adoption of mechanized farming saves cost but embracing workers from communities was a move to create jobs and get them engaged.

A total of twelve temporary settlements were constructed to accommodate the sugarcane cutters with access to electricity, daily food, and portable water. The aim is to save the workers’ transportation cost.

Benefits to host communities and job creation

A sugar planter, Ramat Labran with a Food & Nutritionist educational background at one of the colleges of education in Niger state expressed that the company has impacted a lot in her life, among other 350 female sugarcane planters.
She noted that the monthly income from the company is used to assist her parents and younger ones who are still in secondary school.

Speaking on knowledge impacted by Golden Penny Sugar, she said: “While in the college of education, I was at the food & nutrition department with a little background of sugarcane varieties.

“Right now, I can tell you different varieties of sugarcane and the ones that can germinate on poor soil. I have been empowered a lot over the last three years and the experience is wonderful.

“Other sugarcane planters have also benefited from working with the company. The work does not stop them from doing other things. We resume 6 am and by 12pm we have closed for the day. Some are artisans and the monthly fund from the farm is used to support their family.”

Agric Manager, Golden sugar, Muhammad Iwba who overseas 3,500hectares of sugarcane land, expressed that it was a big challenge to make the hosting communities understand the importance of sugarcane plantation in Niger state
Iwba, who has been with the company since August 2012 noted that the management over the years has empowered youths in the host communities and ensures that the youths are properly taken care of..

“We consider youths with good behaviour and those who are ready to work for the growth of the company and communities at large. The company has provided free accommodation, free food for season workers.

“There is free portable water, and it is the same water for everyone. We also employed camps overheads and their responsibility is to ensure that the camps are in good operations,” he said.

On what FMN is doing differently on sugarcane cultivation, he said: “We do not plant sugarcane varieties based on its history somewhere. We have our research team who gives close monitoring to sugarcane varieties we wanted to plant. We always spend a lot of time stuffing any sugarcane varieties into the farm.

“We always conduct soil tests before planting any sugarcane. It tells us the varieties we suppose to plant and the quantity to plant. These things are very expensive, but FMN understands the importance of doing them.”
Out-growers incentive

The company in Sunti community through its outgrower scheme encourages sugarcane planting to among some of its host communities with free land incentive, fertilizer, water, electricity and seedlings.

Mr. Isa OseniLwafu, an out-grower from Lwafu community who was excited with the program, commanded the management of FMN for making available one hectare of its landed property to the farmers.

“Before FMN commenced sugar plantation, we were rice farmers but switched to sugarcane on the heels of FMN incentives to farmers. Our children have the opportunity to work with FMN.”

Further expansion in 2022 and beyond

The company in 2022 aimed at developing 15,000 hectares under cane and 5,000 hectares as an integrated out-grower scheme. To achieve this target, the 2022 workplan consist of plough-out and plan 850 hectares; further development Sunti, next to Niger River, adding another 700 hectares of new planting and cater for higher crop increase cane haulage capacity by addition of harvesting equipment and modifying the cane carrier with tippler to accommodate all methods of can haulage.

With a total landmass of over 21,000 hectares, including a world-class sugar refinery, the company continued to expand operations at Sunti Golden Sugar Estate including an additional $300 million in Nasarawa state and a commitment to investing another N70 billion over the next three years to develop the upland area of the Sunti Sugar Estate.

Known for its flagship food brand, ‘Golden Penny’, wheat milling forms the financial backbone of FMN’S diversified company.

The 60 years old company pioneered flour milling in Nigeria when its first mill was commissioned at Apapa in 1962 with a grinding capacity of 500 metric tonnes of wheat per day. Today, the Apapa milling complex has a rated capacity of over 8,000 metric tons per day making it one of the largest single-site mills in the world.

Apart from FMN’S initiatives and investments to transform Nigeria’s agricultural prowess, boost output and generate much needed foreign exchange, its contribution in the agriculture and manufacturing sectors is also helping the company to achieve one of the cardinal drivers of its backward integration programmes, creation of employment opportunities for millions of Nigerians.

FMN over the years had maintained its position to feed the nation every day through investment in the food value chain by making an impact on the grassroots level through its business activities.