The Federal Government on Tuesday said that the implementation of the Nigerian Sugar Master Plan will save the country N500bn annually from sugar importation of refined sugar.
The Executive Secretary, National Sugar Development Council, Dr. Lateef Busari, disclosed this in Abuja when he led the management team of the agency on a visit to the Director General, National Agency for Food, Drug Administration and Control, Mr. Paul Orhii.
The Federal Executive Council had, at its 37th meeting held on September 19, 2012, approved the NSMP for implementation and adoption as a government strategic road map for the development of the sugar sub-sector.
The policy, which took effect from January 1, 2013, led to an outright ban on the importation of refined sugar in retail packs.
The plan contains fiscal and investment-specific incentives designed to stimulate and attract new investors to the industry in order to increase local sugar production and reduce the nation’s precarious dependence on imports.
According to the plan, a whopping investment of $3.1bn (N496bn) would be needed from the private sector to effectively implement the sugar policy.
Speaking at the meeting, Busari said apart from the N500bn to be saved, the policy would also help the sector create 115,000 direct jobs.
He also revealed that through the policy, the country would produce 161 million litres of ethanol and generate 411 mega watts of electricity.
The NSDC boss also said the policy had assisted to prevent dumping of cheap sugar on the country and protect local producers.
He said, “The new and profitable sugar industry which is set to emerge by 2020 to 2022 will see the creation of over 115,000 direct jobs, the production of 161 million litres of ethanol and production of 411 MW of electricity through cogeneration.”
He called for cooperation from NAFDAC to ensure the ban on importation of refined sugar in retail packs was fully implemented.
He said, “After 20 months of NSMP’s implementation, we have successfully signed on to backward integration program in three existing sugar refineries, Dangote Sugar Refinery, BUA Sugar Refinery and Golden Sugar Company and the establishment of two Green field projects amounting to $3bn in pipeline investments.
“$2bn of which is by Dangote group to expand its BIP projects at Savannah Sugar Company and establish new projects in Taraba, Niger, Kebbi, Kwara, Kogi and Sokoto state.
The NSDC boss said to ensure the success of the policy, a managed fund agreement with the Bank of Agriculture worth N2bn had been established with another funding facility with Bank of Industry valued at N10bn for sugar investment fund.
This, according to him would help provide single digit interest loans for operators in the industry. Click to signup for FREE news updates, latest information and hottest gists everyday
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