Nigeria has remained import dependent for her sugar needs with humongous bill of N1.46trn annually.
Although the nation’s sugar industry is by no means young, having been first established in the 1960s, it is still not living up to expectations . It can however be regarded to still be in its infancy given the fact that today, it only supplies about 2% of the nation’s requirement, in spite of our comparative and competitive advantages for sugar production. This lacklustre performance has deprived the country of all the benefits derivable from a vibrant sugar sector. Chief among these are the annual drain on the nation’s foreign exchange earnings put at N101.9 billion in 2011, the loss of hundreds of thousands of employment opportunities for skilled and semi-skilled labour and food insecurity arising from sugar import dependence.
Despite a robust sugar development policy in place for over two decades, not much has been achieved to change the situation. It is on record that in 2008, the Federal Government of Nigeria directed the National Sugar Development Council ,NSDC, to develop a road map for the attainment of self-sufficiency in sugar within relatively a short-term. In compliance, the Council came up with the Nigerian Sugar Master Plan which was expected to re-invigorate the industry towards sufficiency in sugar production for local consumption and export.
Only, recently, the Nasarawa State Governor Abdullahi Sule raised the alarm over our dependence on imports for our sugar demands, stating that currently Nigeria consumes about 1.4 to 1.6 metric tonnes of sugar, with 96% imported as raw sugar from Brazil.
The Governor added that the 96% imported as raw sugar from Brazil was then refined in the country’s three sugar refineries owned by Dangote, BUA and Golden Penny.
Sule reportedly raised the concern when he hosted a delegation led by the Country Director, International Fund for Agricultural Development ,IFAD, Mrs. Dede Ekoue, in the Government House, Lafia recently.
He said: “Today, Nigeria consumes roughly about 1.4 to 1.6 metric tonnes of sugar. This quantity of sugar, about 96% is imported as raw sugar from Brazil and refined at our three refineries that we have owned by Dangote, BUA and Golden Penny.
His words: “Assuming we are going to do the entire value chain in sugarcane in Nigeria for this 1.6m metric tonnes, you will create employment opportunities for nothing less than 500,000 people”.
The Governor, therefore, made a case for the inclusion of sugarcane in the value chain initiative of the iFAD/FG Value Chain Development Programme ,VCDP, stressing that such a move would stop importation of raw sugar from Brazil.
In another vein, there are concerns that inefficient crushing capacity has foiled government’s plans to reduce N1.4 trillion ($874 million) bills on 1.7 million tonnes of sugar import despite the country’s total installed capacity, which has risen to three million metric tonnes.
It is worrisome that operators under the Backward Integration Programme ,BIP, have not been contributing to the realisation of the Nigeria Sugar Master Plan ,NSMP, making sugar production remain at 70,000 tonnes as at last year, as they prefer to import 95% of sugar.
Again, the sugar refineries have the capacity to ensure self-sufficiency in the production of refined sugar to ensure unbroken access for the domestic market and export.
Worried by this, the National Sugar Development Council ,NSDC, has said that it will facilitate $5 billion investment into the Nigerian sugar sector in 2025. The Executive Secretary of NSDC, Mr Kamar Bakrin, who explained at a retreat titled:
“Creating Synergy for Nigeria’s Sugar Industry Development”, organised by the council for members of the House of Representatives Committee on Industry in Calabar, noted that NSDC had a comprehensive plan for accelerated sugar project development in 2025.
It is imperative for the Council to reset its agenda to ensure a more robust sugar production capacity given the tremendous benefits that are realizable from the value chain which of course includes conserving nation’s foreign reserves, export opportunities, creating thousands of direct and indirect jobs among others.
We must take advantage of conducive climate, arable lands and the long-term plans which are on paper to enhance productivity.