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Dangote, BUA to benefit from CBN’s $73 million sugar fund

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Nigeria’s merchandise trade rises by 6.85% in Q3 2019

Dangote Sugar, BUA Sugar and other operators in the sugar backward programme will benefit from the Federal Government’s $73 million intervention fund for the sector.

The Central Bank of Nigeria (CBN) will disburse the $73 million on behalf of the government to develop the sugar sector infrastructure with irrigation facilities on 10,000 hectares of sugar plantation.

The Minister of Industry, Niyi Adebayo, disclosed this in Abuja on Monday. It was gathered that the 10,000 hectares of sugar plantations will be located in six sites in Northern Nigeria, as the FG reiterated its commitment to the National Sugar Development master plan.

“The intervention is the setting up of a $73 million intervention fund for irrigation for operators of the sugar backward intervention programme.” Adebayo said.

Read also: Dangote rises to 90th in world’s rich list after netting N968bn in 11 months

He further stated that, “The goal is to support the development of irrigation infrastructure on 10,000 hectares of sugar plantations located in six sites in Numan, Adamawa State; Sumti, Niger State; Lafiagi, Kwara State; Bacita, Kwara State; as well as Toto and Tunga, both in Nasarawa State.”

In a separate statement on Dangote blog, Aliko Dangote had stated that the master plan, if adhered to, will save Nigeria between $600 million and $700 million annually as forex.

And according to the minister, the intervention fund sought to support the government’s plan to make Nigeria self-sustained producer of sugar.

“The aim is to increase significantly the sugar yield so that we can work within the National Sugar Development Plan master plan, with a view to Nigeria becoming self-sufficient in sugar production and possibly become a net exporter of sugar thus saving the country the large bill that it presently incurred in foreign exchange for the importation of sugar,” he said.

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