Local Sugar Production Increases by 101%

• Local Sugar Production Increases by 101%

Local sugar production increased as companies expand their local sugarcane plantations for more raw sugar.

According to the National Sugar Development Council (NSDC), sugar production increased from 14,918 metric tonnes (MT) in 2017 to 30,000MT in 2018. Representing a 101 per cent increase in production during the period.

While most sugar production companies still import raw sugar and refine locally, import decreased from $459.36 million in 2017 to $337.31 million in 2018.

Sugar consumption, however, dropped from 1.301 million MT to 1.246 million MT in 2018.

Masur Ahmed, president, Manufacturers Association of Nigeria (MAN), said: “There are a lot of improvements in the sugar value chain.”

Ahmed, who attended a press conference in Lagos last week, further said “Three companies are already developing significant sugarcanes as their raw material,” he added.

Experts attributed the improvement to Dangote Sugar, Flour Mills and BUA who are competing for market share.

They, however, said there is slow progress in the sugar value chain as some local companies have flouted the agreement signed with the government by importing more of the products, rather than investing in the local market as agreed.

“Certain companies have not been quite diligent in adhering to the rules,” said Sadiq Usman, head- corporate business development, Flour Mills.

“Also, documentation, planting issues, weak infrastructures and land rights are still big problems for us and these factors have continued to slow the pace of our development in boosting sugar production.”

Usman said Flour Mills is the second largest producer of sugar in Nigeria but lost 75 per cent of its plantation to floods in 2018.

“Last year, the floods wiped away a significant proportion of our sugarcane production. It affected close to 2,000 hectares of the 3,000 hectares we planted and now we are replanting again.”