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Flour Mills of Nigeria Plc, a leading brand in the food and agro-allied industry in Nigeria, has announced the upland acquisition of an additional 5,200 hectares of land in Sunti Golden Sugar Estates located in Mokwa, Niger state, in line with its expansion plans.
The company also revealed that the total projected cost to achieve this bold plan is set at a minimum of about N160 billion, including the new Sugar mill at Nasarawa.
According to a statement issued by the leading agro-allied company, the acquisition of the land is in line with Flour Mills’ commitment to the backward integration strategy of the Nigerian Sugar Master Plan (NSMP), and the overall growth vision of the Sugar industry in the country.
The new 5,200 hectares of land acquired by the flour miller will expand the total land size of Sunti Golden Sugar Estates to about 22,000 hectares of land, with the total land area under cane cultivation now coming up to 15,000 hectares.
What you should know
The news of the land acquisition by Flour Mills comes weeks after claims of involvement in price-fixing and arbitrary collusion to create sugar scarcity were made against the company in a letter written by the founder of the BUA Group, Abdulsamad Rabiu to the Minister of Industry, Trade and investment, Niyi Adebayo.
Abdulsamad in his letter added that among the three players in the Nigerian sugar industry, only BUA Sugar Refinery has made serious investment commitment to the backward integration strategy of the Nigerian Sugar Master Plan (NSMP).
Why this matters
Flour Mill’s investment in the sugar industry highlights the importance of the sugar value chain, and the company’s support and commitment to the Government’s overall strategy of raising the profile of agriculture while diversifying the economy.
Hence, the expansion plan of the Golden Sugar Company, a subsidiary of the Flour Mills of Nigeria Plc is an effort to immensely increase the production capacity of the sugar estate, in a bid to drive the attendant expansion of the sugar production capacity of the mill, as the company will have over 25,000 hectares of land under cane.
Other proposed investment in this line will ensure that production is ramped up to approximately 250,000 tonnes of sugar per year. This will significantly increase local sugar production, reduce dependence on food imports, and save the country’s foreign exchange.
Expansion plans by other players in the industry
- BUA Group recently disclosed that it has invested over $300 million in Lafiagi Sugar Company (LASUCO) in Kwara State, which is in an advanced stage to completion.
- LASUCO, which is an integrated milling factory that will comprise of a 20,000-ha sugar plantation, a 10,000tcd sugar mill, a 220,000mtpa sugar refinery, 20,000,000 liters per annum ethanol plant, and a 35-megawatt power plant that will be integrated into the national grid.
- Dangote Sugar Refinery on the other hand revealed that the Company had commenced rehabilitation and expansion of the Savannah Sugar Company Limited Sugar Factory at Numan, with a key focus to increase production capacity by 6,000 tons of cane per day (TCD).
- The company also noted that Sugarcane planting has also commenced in two other BIP locations. Regrettably, due to community dispute over the land acquired in Niger State, projected activities have not commenced in Niger State.
Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor. He is
a business owner and a stern advocate of Financial literacy, who believes in the huge economic prospect of the Nigerian Payment channels and Fintech space.
ASR Africa donates N1bn to the University of Ibadan as part of its Tertiary Education Grants Scheme
…commences project initiation process in collaboration with University.
26 mins ago
April 23, 2021
The Abdul Samad Rabiu Africa Initiative (ASR Africa) has commenced project initiation consultations for its N1billion grant to Nigeria’s foremost University, the University of Ibadan, as part of its ASR Africa Tertiary Education Grants Scheme. This was announced at a presentation of the grant to the management of the university and comes barely a month after the ASR Africa Initiative donated N1billion to Ahmadu Bello University towards the provision of student housing and a faculty building.
The initiative, whose core areas of intervention are Education, Health and Social Development in Africa focuses mainly on equipping facilities, researchers, healthcare practitioners and community-level service providers and also supporting the efforts of various Governments in Nigeria and Sub-Saharan Africa.
Represented by Dr. Aliyu Idi Hong, the Chairman of ASR Africa, Abdul Samad Rabiu said, “We are committing 100million dollars annually for social development, health and education intervention in Nigeria and Africa through the ASR Africa Initiative. Of this amount, 50million dollars is being committed to Nigeria and another $50million for the rest of Africa. As part of the initiative’s Tertiary Education Grants Scheme, N1billion each has been allocated to 6 universities across Nigeria. Subsequently, more interventions will be done in the areas of health and social development”.
On his part, the Acting Vice Chancellor of the University, Prof. Adebola Ekanola thanked Abdul Samad Rabiu and ASR Africa for the gesture stating that, “This is an important intervention for the University of Ibadan. It will meet some of our most pressing needs which will also impact on our capacity to achieve the core objectives of the University of Ibadan.
“We believe that these projects we are proposing for the grant sponsorship will empower the University of Ibadan to be more efficient and effective in teaching, research and community services. It will also empower us to train our students in ways that would make them to be globally competitive.
“This initiative will go a long way in revamping our educational sector in Nigeria with specific reference to the university system in the country”.
ABOUT ASR AFRICA
The Abdul Samad Rabiu Africa Initiative seeks to support sustainable development initiatives in the Health, Education and Social Development within Nigeria and the rest of Africa, every year. For more information visit asrafrica.org or email asrafrica[at]buagroup[dot]com
Unemployment: Tech can be used to reduce youth unemployment – BOI
The FG disclosed that technology can be used as a catalyst to solve the youth unemployment crisis in Nigeria.
2 hours ago
April 23, 2021
The FG disclosed that Technology can be used as a catalyst to solve the youth unemployment crisis in Nigeria, citing that embracing tech and infusing it into business processes will make organisations and the country more competitive.
This was disclosed by Mr Olukayode Pitan, Managing Director, Bank of Industry (BOI), at the inauguration of BOI-UNILAG Incubation and Co-Working Hub, on Thursday in Lagos.
What Mr Pitan said
Tech can help solve some of Nigeria’s social problems particularly youth unemployment which has been further exacerbated by the pandemic.
At the Bank of Industry, we believe that corporate organisations that are privileged to be in business at these difficult times need to bring groups of like-minded young individuals together to help create wealth and prosperity for future generations.
Embracing tech and infusing it into business processes will make organisations and the country more competitive.
It can create exciting jobs that encourage our young people to stay in Nigeria even as they work and compete globally,” he said.
The BOI boss also revealed that 2 additional hubs have been completed in Kaduna and Kebbi, citing that the bank will also provide funding to support credible and bankable ideas that emerge from the tech hubs to enable them start operations and scale into viable businesses.
“At the Bank of Industry, we believe that with the collective will of our young people’s positive passion, the right government policies, mentorship, and private capital, this can become a reality in a short period,” he said.
What you should know
Nigeria’s unemployment rate as of the end of 2020 rose to 33.3% from 27.1% recorded as of Q2 2020, indicating that about 23,187,389 (23.2 million) Nigerians remain unemployed.
According to the last Gross Domestic Product Report, released by the National Bureau of Statistics (NBS), the information and communication sector grew by 13.8%% in full-year 2020 compared to 11.08% recorded in 2019 and 9.65% in 2018.
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