BREAKING: Bakers, Others Import N423bn Worth Of Raw Sugar For Production

Manufacturers have taken delivery of N423 billion ($264.3 million) worth of raw sugar in four months, following increase in demand by bakery and confectionery, pharmaceuticals, dairy and soft drinks sectors.

Findings revealed that in February, shipment was $88.5 million; March, $24 million; April, $85 million and May, $66.8 million. Import of the commodity was projected to crash by nine per cent from 1.61 million tonnes in 2024 to 1.47 million tonnes this year.

The reduction in import is estimated at 140,000 tonnes despite the reduction in the price of raw sugar from $510 to $404 per tonne.

So far, the country has taken delivery of 411, 254 tonnes as it relies on 96 per cent raw sugar import from Brazil in the last one decades.

Meanwhile, the Federal Government has rolled out comprehensive plan for accelerated sugar project development in 2025 to encourage investors to grow sugar by 9.4 per cent from $1.84 billion in 2024 to $2.03 billion in 2025.

Recall that the Executive Secretary of the National Sugar Development Council (NSDC), Mr. Kamar Bakrin, had briefed stakeholders on measures being taken by government to address obstacles to local sugar production.

At a tripartite meeting of the council, the Ministry of Industry, Trade and Investment and the major Backward Integration Programme (BIP) operators, in Abuja, he noted that the council had elevated performance monitoring and oversight of BIP operators beyond what the Sugar Industry Monitoring Group (SIMOG) did in the past.

Bakrin added that operators had complained about loopholes in the free trade zone regime, delays in equipment clearing, smuggling, and host community resistance.

The executive secretary highlighted financing support, sanctions for underperformance and the need for operators to improve agronomic and factory practices, noting that growing sugarcane and processing it in the country was more sustainable and rewarding than importing raw sugar.

He said: “The operators have complained about the existing loopholes in the free trade zone regime, which they believe certain participants in the NSMP have exploited.

“They also cited delays in the clearing of equipment at the ports, smuggling of sugar into the country, host community resistance to the expansion of their BIP programmes as the primary causes of the delays in their BIP execution.

“The loopholes in the FTZ regime are being addressed by the ongoing amendment of the NSDC Act by the National Assembly.

The amendment process which has involved engagements with the relevant National Assembly Committee and key stakeholders among other objectives, address the concern of the BIP operators and also make the industry more attractive to other investors.”

Also, he noted that total installed capacity of Nigeria’s sugar refineries had risen to three million metric tonnes, creating self-sufficiency in the production of refined sugar and securing a steady supply of refined sugar for the domestic market.

Bakrin stressed that the Backward Integration Programme under the NSMP had attracted $1 billion worth of investments from its major investors, who have created over 15,000 permanent and seasonal jobs, acquired over 180,000 hectares, placed 13,000 hectares under cane, established cane processing factories with a total capacity of 18,000TCD in five active project sites.