FG begins implementation of Backward Integration Policy in sugar industry

Abuja – The Federal Government has commenced the implementation of the
Backward Integration Policy (BIP) in the sugar industry with the
approvalof the plans and projects by three sugar refineries in
Nigeria.
The Minister of Industry, Trade and Investment, Mr Olusegun Aganga,
performed the signing-off ceremony inAbuja on Tuesday with the
representatives of Dangote Sugar Refinery, BUA Group and Golden Sugar
Refinery.
The Federal Executive Council had on Oct. 19, 2012, approved the
Nigerian National Sugar Master Plan (NSMP).
The NSMP is expected to generate about 170,000 new jobs across the
country, ensure self sufficiency in sugar production, and conserve
about $350 million annually in foreign exchange.
According to the plan, the sugar industry is also expected to produce
about 1,797,000 tonnes of the commodity annually.
Also, about 161.2 million litres of ethanol to be produced would
generate 400 MW of electricity, among others.
Aganga said the signing-off ceremony marked the beginning of the
nation's journey toward sound industrialisation, in line with the
Nigerian Industrial Revolution Plan.
"Today is the demonstration that the implementation of the Backward
Integration Policy in the Sugar industry, which is a critical part of
National Sugar Master Plan, has started."
The minister commended the sugar refiners for keying into the new
Sugar Master Plan.
He said the Federal Government was committed to implementing the
policyin a fair, transparent and mutually-beneficial manner.
He expressed delight that since the new sugar policy was announced
sugarrefiners had shown commitment toward its implementation.
He said the President of Dangote Group, Alhaji Aliko Dangote, had made
some pronouncements on the company's intention to invest about
$2billion (about N316bn) to produce about 1.5 million tonnes of sugar.
"Currently, they are discussing with Adamawa, Kogi, Kebbi, Sokoto and
Taraba states.
"If this is successfully implemented, you will be amazed by the level
of economic transformation that will takeplace in these states.
"Similarly, Golden Sugar Refinery plansto produce about 30 tonnes of
sugar from about 13, 500 hectares of land in Niger State with an
investment of close to N50 billion," he said.
He commended Dangote Group, BUA Group and the Golden Sugar Refinery
for showing commitment to the BIP, stressing that an inter-ministerial
committee would be set up to monitorits implementation.
The representative of Dangote Group, Mr Joseph Makoju, stated the
willingness of the companies to work with the Federal Government to
ensure the successful implementation of the policy.
"We want to commend the minister forhis relentless efforts toward
making Nigeria the preferred investment destination in Africa and
globally.
"We are happy with the minister's passion and commitment for
supporting local production as against importation.
"The BIP in the sugar industry will move Nigeria away from the era of
importing bulk of raw sugar to that of producing sugar locally," he
said. (NAN)