During his recent visit to Nasarawa state, the President, Dangote Group of companies, Alhaji Aliko Dangote, disclosed that his conglomerate has commenced work on the proposed N217 billion (700million dollars) sugar plantation and refineries in the state.
Dangote lamented that despite the huge potential for the production of sugar, Nigeria produces less than a quarter of its requirement, estimated at 1.7 million tones.
Although privatization of sugar estates has improved the subsector as attested to by the turnaround at the Savannah Sugar Company in Numan, Adamawa state, the challenge remains evolving strategies to meet the demands of about 168 million consumers and prevent huge spending on imports.
To reverse the trend and catch up with the current and fast growing demand, Dangote Group is cultivating 40,000 hectares of land as sugarcane plantation in Nasarawa and constructing a refinery with daily crushing capacity of 24,000 tones as a long-term investment.
Dangote explained that the setting up of the sugar factory in the state will provide direct employment to over 30,000 persons while over 100,000 persons who are skilled and unskilled will eventually get indirect employment.
He said the company would also engage over 10,000 out-growers who would be provided with all the necessary inputs and ready markets for their produce.
Dangote said the refinery which will be located in Tunga, Awe local government area of the state is capable of producing 482,000 tonnes of sugar and generate 96 megawatts of electricity for the state which will attract other investors to the state.
“The production capacity of the sugar factory in Nasarawa will be the largest in West Africa, no sugar factory produces more than 250,000 tonnes, so we are doing double in the state, we need about 600 trucks to distribute the sugar across the country, “ Dangote stated.
He further explained that the project will transform the lives of Nasarawa people as most of them will take the advantage of the electricity to set up small scale businesses.
The business mogul promised to build new schools and renovate existing ones within the host communities and take over the payment of teachers and employ more in addition to providing pipe born water for the development of the area.
Also speaking, the Group Managing Director of Dangote Sugar Refineries, Abdullahi Sule said the project will require about 60,000 hectares of land, adding that the 40,000 hectares of land provided by the Nasarawa state government presently will not be enough even as he expressed delight that there is abundant land for improvement towards Awe and Azara.
Giving a more technical detail, Sule said preliminary investigation shows silty clay soil with medium texture and very fine sand strata, which is very good for sugarcane crop.
“The project is 400 km from Abuja and 680 KM from Lagos and would also produce ethanol and electricity for own use and sell of surplus to the national electricity company”.
He explained that the scope of the project initially include feasibility study expected to last for a period of four months four months while design packages was scheduled to last for sixmonths.
Tender Documents was projected to last for two months and project construction and commissioning 30 months giving a total of 42 months.
During his visit however, Dangote gave marching orders to his lieutenants to ensure that the project is ready for commissioning within 30 months.
The Group Managing Director of Dangote Sugar Refineries pegged sugarcane production at 4,320,000 tons per annum with an implied yield of 100 tons per hectare. He said the sugar platform has a total crushing capacity 24,000 ton per day and sugar extraction rate of 10.0%
He said Sugar is not the only product to be produced by the refinery as 100,000 tons of animal feed would be produced per annum in addition to 34,000,000 litres of ethanol.
Enumerating the enormous benefits the local community, state and the nation stand to benefit from the investment, he said it would improve the livelihood of the local communities and generate more income for farmers and revenue to the state.
He said a maximum of 30% of the factory sugarcane will be supplied through out-grower schemes covering 13,000 hectares where approximately 10,000 farmers will benefit.
In addition, 40% of the cane planting and harvesting will be manual to provide jobs for teeming youths in the state.
Residential township, agricultural management areas, and basic services in terms of schools, health facilities, clean water supply, worship places, etc. will be provided, which will benefit the locals.
Governor Umaru Tanko Almakura who will go down in history of Nasarawa state as having attracted its biggest investor expressed satisfaction with the decision by Dangote Group to invest in the state and promised to provide the enabling environment for smooth operation including security.
He said the state government has since ensured that access road to the area was constructed, adding that government has gone into discussion with the federal Inland Waterways to provide alternative transportation system.
Consequently, the All Progressives Congress in Nasarawa state has applauded his dogged efforts towards attracting investors to explore the abundant resources in the state.
The state chairman of the party, Mr. Philips Shekwo, said investors and diplomats from four Asian and European countries had visited the state and indicated interest at exploring the mineral and agricultural potentials in the state.
The party, however, said the crescendo was the commitment by the chairman of Dangote goup of companies, Alhaji Aliko Dangote, to establish a N217 billion sugarcane plantation and refinery in Tunga, Awe local government area of the state which will boost the economic base of the state.
“The APC commends Governor Almakura in his effort at wooing investors, local and international, to explore and exploit the vast natural resources that abound in the state”.
“The recent visits by investors from China, Singapore, South Korea, and the British High Commissioner, Paul Arkwright, attest to the governor’s commitment in this direction. The most remarkable is the commitment by the chairman, Dangote Group of Companies, to commit the sum of N217 billion for the establishment of a sugarcane plantation and refinery in the state with its attendant economic benefits’.
Similarly, the Nasarawa State House of Assembly has lauded Dangote Group of Companies for investing N217 billion in the establishment of a sugar plantation and refinery in the state so as to boost employment and the socio-economic development of the state.
The Speaker of the House, Alhaji Ibrahim Balarabe-Abdullahi, stated this after the majority leader, Umar Tanko Tunga(APC-Awe North) raised the issue on the need for the house to commend the company over its gesture under matters of public interest during the house proceedings in Lafia.
Balarabe-Abdullahi said that the commendation has become imperative in view of the benefits the projects will bring to the state.
“We are aware when this project, which is the biggest sugar refinery in West Africa, takes off it will create multiplicity of jobs and increase the Internally Generated Revenue (IGR) of the state as the farm will create direct employment for not less than 30,000 people in the state.”
“The project will also boost the socio-economic development of the state as well as fight poverty among others benefits”.
“It is in view of this that we are commending Governor Al-Makura for his efforts towards wooing Alhaji Aliko Dangote to invest such huge amount of money towards boosting the economy of our state.
“We are also assuring the company of adequate legislative backing as the Assembly is ready to contribute its best towards ensuring the successful realization of the project meant to add value to the lives of our people” He added that , “ it is in the interest of the good people of our state to jealously guide and guard this initiative when established”.