Sugar Council Seeks to Strengthen Refining Capacity to Break FOREX Barriers

James Emejo

The Executive Secretary/Chief Executive, National Sugar Development Council (NSDC), Mr. Zacch Adedeji, has said the council is currently working towards strengthening the industry’s local sugar refining capacity with a view to overcoming the present challenges in accessing foreign exchange.

He said apart from deploying technology, it would also strive to solve the FX issues by encouraging investment in production and refining capacity.

He spoke when he received a delegation from Oyo State Government, led by the Director-General of the State Liaison Office Abuja, Mr. Wale Ajani, to among other things deliberate on a partnership to further grow the sugar economy in the state.

Adedeji, who noted that Nigeria currently consumes about 1.7 million metric tons of sugar, however, pointed out that, the country would require 250,000 irrigated lands – in a normal temperate land – to support local consumption.

He said Nigeria remained a net importer of sugar in Africa with about 11 million metric tons annually which constitutes a huge drain on foreign exchange.

Nonetheless, the NSDC boss said the emergence of the African Continental Free Trade Area agreement (AfCFTA), offers the country ample opportunity to play a leading role in the development and export of the commodity.

While assuring that the council would continue to partner with the state government to harness the potential of the sugar industry, he pointed out that the latter already had a mini sugar factory in the state.

According to him, about 80 per cent of sugar consumption in Nigeria happens in three states including Lagos, Ogun, and Oyo given the industrial activities in the areas, adding that the table sugar consumption only accounted for less than 5 per cent.

He explained that the real sugar consumption in the country was mostly industrial.

He described the visit by the delegation as “very auspicious”, noting that the establishment of the Sugar Cooperative in Iseyin, remained one of the major works currently undertaken by the council in the state.

Adedeji said the new sugar factory being installed in the state would have a capacity of about 1,250 Total Cane per day (TCD) adding that it is about 96 per cent completed.

He said, “If not for the fluctuation we have in FOREX and some delays, I think by now we should have commissioned it.”

He insisted that to tackle the menace of insecurity and unemployment, the country needed to “go back to the productive economy, part of which sugar is going to play a major role”.

While commending the state governor for providing a conducive environment that allows business to thrive, Adedeji further tasked the government to boost infrastructure for sugar cane development, particularly the construction of access roads and irrigation dams as well as de-risk the sector in order to attract more private sector involvement.