Dangote Sugar winds up sugar business in Niger State

The Board of DSR has completed all winding-up proceedings for its Backward Integration Project in Niger State.

Quick take: Sustained cost pressure weighs on profit, Dangote Sugar Refinery: Revenue recovers but cost pressures remain

Dangote Sugar Refinery Plc, one of the leading producers of refined sugar to consumers and industries in Nigeria has successfully wind up its sugar business in Niger State – under the Dangote Niger Sugar Limited.

According to a note by the company, this decision was made in an effort to cut down on deadweight cost, coming from a stretched situation from its host community which had started accumulating negative returns for the integrated sugar business.

The company noted that after a careful assessment of recent disruptions to its operation as projected in the state, due to community dispute over the land acquired in Niger, the Board of DSR in December 2020 completed all winding-up proceedings for the Backward Integration Project Company in Niger State.

The Dangote Niger Sugar Limited was created through an MOU between the Niger State Government and Dangote Sugar Refinery Plc, for the establishment of an integrated sugar project in the State.

The 12,000 tcd mill located on a 16,000ha land near Mambe, Lavun LGA of Niger State, had an estimated set-up cost of $450million.

The Sugar project was established as an integral part of the company’s Backward Integration Project (BIP), with a 10-year sugar development plan to produce 1.5 million MTPA of sugar from locally grown sugarcane, under the Nigeria Sugar Master Plan (NSMP), a plan implemented to make Nigeria self-sufficient in sugar production.

The BIP Company in Niger State was the fourth sugar project by Dangote Sugar, after the Savannah Sugar Company – Numan Adamawa State, Lau/Tau Sugar – Taraba State and Tunga Sugar Project in Nasarawa State.

  • Dangote Sugar Refinery Plc is one of Nigeria’s leading integrated sugar companies, and a major refiner of raw sugar with a key focus on the production of fortified and non-fortified granulated white sugar.
  • The company has a total installed capacity of 1.44 million metric tons (MT) per annum with key expansion plans in place.
  • Its operational activities aside sugar production include, the distribution of refined white sugar to consumers and industrial customers in the country, and also the exportation of its products to other West African countries.
  • In 2020, Dangote Sugar delivered an impressive financial performance, with the company’s earnings soaring by 33.0% to N29.8 billion for the financial year of 2020.
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