Connect with us

Business

Flour Mills Signs $300M Sugar Production Deal with Nasarawa State

Published

on

Flour Mills Nigeria at the weekend ramped up its Backward Integration Programme (BIP) in the in-country production of sugar, with the signing of a $300 million deal with the Nasarawa state government, north-central Nigeria.

At the event which witnessed the presence of the Governor of the state, Abdullahi Sule, his colleague from Borno state, Prof. Umar Zulum and the Governor of Kwara state, Abdulrahman Abdulrazaq, the company disclosed that the project would be located on 20,450 hectares of land.

The project sited at Umaisha Development Area of Toto local council, was expected to commence immediately with land preparation, including surveys and other initial designs, while the plan is to develop up to 15,000 hectares of sugar cane and construction of a sugar mill after preliminary works.

In his remarks, at the signing of the Memorandum of Understanding (MoU) in Abuja, Group Managing Director of the company, Mr. Boye Olusanya, noted that flour mills will embark on construction of schools, recreational facilities and several other amenities as part of its corporate responsibility to its hosts.

As of 2019, sugar consumption in Nigeria stood at 1.4 million tonnes, production was at 38,597 tonnes, while the country imported 1.36 million tonnes during the period to augment local production.

Olusanya stated that since 1978, when the company acquired a 10,000-hectare farm in Kaboji, Niger state, it has continued to demonstrate its commitment to harnessing the nation’s resources.

“As part of our contribution to the backward integration strategy of the National Sugar Master Plan (NSMP), we are expanding our investments in the Backward Integration Plan (BIP) with the acquisition of 20,450 hectares of land in Nasarawa State.

“This is of course in addition to our already bourgeoning investments at Sunti, Niger state, which is by the way, on record as being the first greenfield investment under the national sugar master plan that is currently producing raw sugar,” he stated.

The company expressed commitment to the success of the NSMP and sought the backing of the federal ministry of industry, trade and investment as well as the National Sugar Development Council (NSDC) by pursuing more enabling policies.

Sule, in his comments, said the agreement was in fulfilment of his earlier promise to push for the industrialisation of Nasarawa during his inauguration two years ago.

He explained that the sugar company would stimulate economic activities, generate employment and bring development to the state and advised flour mills to ensure employment opportunities for the people of the state.

“This event is perfectly in line with our resolve and our investment drive to create wealth and ensure employment for our citizens as well as to transform the state into an investment haven where industries are easily set up and run efficiently,” he said.

The governor revealed that several security agencies are currently located in the local government where the project is being located promising to ensure that persons who will work on the project are secure.

Minister of Trade, Industry and Investment and former Ekiti State Governor, Mr. Niyi Adebayo, while speaking, lauded the state government for keying into the diversification drive of the federal government.

He called on other state governors to emulate Sule in order to make the country self-sufficient, and transform the country to a major exporter of agricultural products.

Abdulrasaq also praised the backward integration policy of the federal government, noting that the state is also expanding its sugar refinery located in Bacita in line with the plan.

Zulum, who also spoke at the event, expressed hope that the project would create jobs and economic growth that would support Nigeria as a whole, stressing that insurgency in the north can be traced to poverty and high rate of unemployment.

Continue Reading
Comments

Business

Peter Obi Advocates for Full Government Backing of Dangote’s $21bn Refinery Project

Published

on

Peter G. Obi

Peter Obi, a prominent Nigerian politician and public figure, has called for unwavering support for the Dangote Refinery amid recent conflicts between Dangote Industries and government agencies.

In a passionate appeal, Obi said the current disputes extend beyond political and personal differences, touching upon the broader interests of Nigeria’s economy and its future prosperity.

In his statement on X.com, Obi highlighted the refinery’s immense potential to drive economic growth and create employment opportunities.

With an estimated annual revenue potential of approximately $21 billion and the capacity to generate over 100,000 jobs, the Dangote Refinery represents a cornerstone of Nigeria’s industrial advancement and economic stabilization.

“The recent challenges faced by Dangote Industries should not overshadow the vital role this enterprise plays in our national economy,” Obi asserted.

“Alhaji Dangote’s contributions are monumental, and it is essential that we rally behind his ventures, particularly the refinery, which is set to make a significant impact on our fuel crisis and foreign exchange earnings.”

The refinery, with its strategic importance, stands as a beacon of hope for Nigeria’s fuel supply and overall economic development.

It is poised to address long-standing issues in the energy sector, provide substantial revenue streams, and enhance the country’s economic resilience. Given these benefits, Obi stressed that any actions hindering the refinery’s operation would be counterproductive.

Obi also commended Alhaji Dangote for his remarkable achievements across various sectors, including cement, sugar, salt, fertilizer, infrastructure, and more.

“Alhaji Dangote embodies patriotism and commitment to Nigeria’s growth. His extensive industrial activities are not only a testament to his entrepreneurial spirit but also a vital contribution to Nigeria’s economic landscape,” he added.

Despite the challenging business environment, Dangote’s diversified industrial investments demonstrate a commitment to Nigeria’s industrialization and job creation.

Obi urged the Federal Government and its agencies to offer full support to Dangote Industries, recognizing the broader economic benefits and the positive impact on national welfare.

“The success of Dangote Industries is intrinsically linked to the success of Nigeria and Africa as a whole. We cannot afford to let such a crucial enterprise falter,” Obi warned. “Every sensible and patriotic government should view enterprises like Dangote Industries as national treasures that deserve robust support and protection.”

Obi’s appeal underscores the critical need for collaboration between the government and private sector leaders to ensure the successful operation of key projects like the Dangote Refinery.

Continue Reading

Business

Dangote Accuses NNPC and Oil Traders of Secret Operations in Malta

Published

on

NIGERIA-HEALTH-EBOLA-WAFRICA

Aliko Dangote, chairman of Dangote Industries Limited, has leveled serious allegations against personnel from the Nigerian National Petroleum Company (NNPC) Limited and certain oil traders.

Speaking at a session with the House of Representatives, Dangote claimed that these parties have established a blending plant in Malta, raising concerns about the integrity of Nigeria’s fuel supply.

Dangote described the blending plant as lacking refining capability, instead focusing on mixing re-refined oil with additives to produce lubricants.

“Some of the terminals, some of the NNPC people, and some traders have opened a blending plant somewhere off Malta,” he stated.

He emphasized that these activities are well-known within industry circles.

Addressing the drop in diesel prices, Dangote argued that locally produced diesel, with sulfur content levels of 650 to 700 parts per million (ppm), is superior to imported variants.

He linked numerous vehicle issues to what he described as “substandard” imported fuel.

He called for the House of Representatives to set up an independent committee to investigate fuel quality at filling stations.

“I urge you to take samples from filling stations and compare them with our production line to inform Nigerians accurately,” Dangote insisted.

The accusations come amid an ongoing dispute between the Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Farouk Ahmed, NMDPRA’s chief executive, had previously claimed that local refineries, including Dangote’s, were producing inferior products compared to imports.

Also, the House of Representatives has initiated a probe into allegations that international oil companies are undermining the Dangote Refinery’s operations.

In response to the escalating tensions, Heineken Lokpobiri, the Minister of State for Petroleum Resources, intervened by meeting with key stakeholders including Dangote, Ahmed, and other top officials from the Nigerian petroleum regulatory bodies.

The discussions aimed to address claims of monopoly against Dangote, which he has strongly denied, and to ensure that all parties operate transparently and fairly.

This development highlights the complex dynamics within Nigeria’s oil industry. The allegations and subsequent investigations could impact market stability and investor confidence.

Continue Reading

Business

Africa’s Richest Man, Aliko Dangote Ready to Sell Refinery to Nigerian Government

Published

on

Dangote refinery

Aliko Dangote, Africa’s wealthiest entrepreneur, has announced his willingness to sell his multibillion-dollar oil refinery to Nigeria’s state-owned energy company, NNPC Limited.

This decision comes amid a growing dispute with key partners and regulatory authorities.

The $19 billion refinery, which began operations last year, is a significant development for Nigeria, aiming to reduce the country’s reliance on imported fuel.

However, challenges in sourcing crude and ongoing disputes have hindered its full potential.

Dangote expressed frustration over allegations of monopolistic practices, stating that these accusations are unfounded.

“If they want to label me a monopolist, I am ready to let NNPC take over. It’s in the best interest of the country,” he said in a recent interview.

The refinery has faced difficulties with supply agreements, particularly with international crude producers demanding high premiums.

NNPC, initially a supportive partner, has delivered only a fraction of the crude needed since last year. This has forced Dangote to seek alternative suppliers from countries like Brazil and the US.

Despite the challenges, Dangote remains committed to contributing to Nigeria’s economy. “I’ve always believed in investing at home.

This refinery can resolve our fuel crisis,” he stated, urging other wealthy Nigerians to invest domestically rather than abroad.

Recently, the Nigerian Midstream and Downstream Petroleum Regulatory Authority accused Dangote’s refinery of producing substandard diesel.

In response, Dangote invited regulators and lawmakers to verify the quality of his products, which he claims surpass imported alternatives in purity.

Amidst these challenges, Dangote has halted plans to enter Nigeria’s steel industry, citing concerns over monopoly accusations.

“We need to focus on what’s best for the economy,” he explained, emphasizing the importance of fair competition and innovation.

As Nigeria navigates these complex issues, the potential sale of Dangote’s refinery to NNPC could reshape the nation’s energy landscape and secure its energy independence.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending