Dangote Sugar Sets Ambitious Target: Aims to Produce 1.5 Million Metric Tons from Locally Grown Sugarcane Amid Rising Costs
Dangote Sugar Plc, a key player in Nigeria's sugar industry, has unveiled plans to ramp up its annual sugar production to 1.5 million metric tons (MT) sourced from locally cultivated sugarcane. The move comes in response to the country's escalating sugar prices, which have become a cause for concern.
The revelation was made by Ravindra Singhvi, the Chief Executive Officer of Dangote Sugar, during a presentation to the Nigerian Exchange Limited. Singhvi emphasized the company's commitment to the Federal Government's Backward Integration Policy for the sugar sector, aimed at achieving self-sufficiency in sugar production.
According to Singhvi, Dangote Sugar is intensifying efforts to boost its refining operations in Numan, Adamawa State, and develop greenfield sites like the Nasarawa Sugar Company Project. These initiatives are expected to contribute significantly to achieving the targeted 1.5MT annual sugar yield from locally grown sugarcane.
The company's ambitious goal aligns with the National Sugar Master Plan's objective of promoting domestic sugar production. It also underscores Dangote Sugar's pivotal role in driving the transformation of Nigeria's sugar industry landscape.
Singhvi highlighted the recent milestone achieved by Dangote Sugar, joining the league of companies with a market capitalization of N1 trillion on the Nigerian Exchange Limited. This accomplishment reflects the company's robust performance and strategic positioning in the market.
In addition to its production expansion plans, Dangote Sugar is actively engaged in discussions with regulatory bodies regarding a planned merger involving NASCON and Dangote Rice Limited. Singhvi emphasized the strategic significance of this merger, which is poised to unlock synergies and drive growth across the food industry.
The proposed merger underscores Dangote Sugar's unwavering commitment to delivering enhanced value to its stakeholders. Singhvi expressed confidence in the merger's potential to yield long-term benefits for shareholders and contribute to the company's sustained success.
The announcement comes amidst efforts by the Federal Government to address the challenges posed by high sugar prices in the country. Collaborative initiatives between government and industry stakeholders are crucial for implementing policies that promote affordability without compromising sustainability.
Dangote Sugar's proactive approach to expanding its production capacity underscores its pivotal role in driving the growth and development of Nigeria's sugar industry. With its sights set on achieving a significant increase in local sugar production, the company is poised to play a transformative role in ensuring the country's self-sufficiency in sugar supply.
