Niger State Government Signs Deal with Three Companies to Revolutionize Sugar Production in Nigeria

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• Niger State Government has signed an MoU with three companies to enhance sugar production, aiming to establish six sugar mills and cultivate 148,000 hectares for sugarcane.
• Governor Mohammed Umaru Bago announced plans for a billion-dollar fund to support the initiative, which will empower local farmers and boost livelihoods in the region.
• The project aims to increase Nigeria’s sugar production from 3% to a more self-sufficient level, utilizing technology and resources like excess water from the Shiroro Dam for ethanol production.

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Niger State Government Signs Deal with Three Companies to Revolutionize Sugar Production in Nigeria

The Niger State Government has recently signed a Memorandum of Understanding (MoU) with three companies to enhance sugarcane cultivation and production within the state, aiming to revolutionize Nigeria’s sugar industry.

The agreement was formalized at the Government House in Minna and involves Uttham Sucrotech International, Rite Foods Ltd, Legacy Sugar Company Ltd, and Niger Foods.

This ambitious three-year project will establish six sugar mills in Niger State, with four located between Shiroro and Minna, utilizing 148,000 hectares of land. According to the MoU, Uttham Sucrotech will oversee the cultivation of 110,000 out-growers, alongside producing by-products such as refined ethanol, power, and cattle feed.

Governor Mohammed Umaru Bago, who has a background in farming, hailed the agreement as unprecedented, stating it would significantly improve the livelihoods of local residents. He emphasized the state government’s commitment to agriculture as a cornerstone of the economy and announced plans for a billion-dollar sovereign guarantee fund to support the sugar initiative.

Rajan Adlakha, Chairman of Uttham Sucrotech, noted the vast agricultural potential of Niger State and highlighted the project’s goal of empowering local farmers towards self-sufficiency. He assured that the best technology would be implemented in the sugar plants, asserting that Niger has the capacity to meet the country’s ethanol production needs.

Sammy Adigun, Chairman of Niger Foods, pointed out that Nigeria currently produces only 3% of its sugar consumption, expressing confidence that this agreement would change that narrative. He mentioned that excess water from the Shiroro Dam would be harnessed for the sugar mills, anticipating an off-take of 145 million litres of ethanol annually, with each participating farmer projected to earn between 5 to 6 million Naira each year.

Seleem Adegunwa, Managing Director and CEO of Rite Foods emphasized the company’s role in ensuring a market for the sugar products and pledged comprehensive support for achieving production targets, similar to efforts in Adamawa State.

Alh. Abubakar Isah, representing Legacy Sugar Company, reaffirmed support for the initiative, stating it would alleviate pressure on foreign currency and foster community development.

Balarabe Ladan, Director of Project Development and Investment Promotion at the National Sugar Development Council, commended the Niger State Government for this timely initiative, suggesting it could promote prosperity and mitigate social issues. He encouraged other state governments to emulate this model.

Stakeholders and investors reiterated their confidence in the Governor’s vision, promising to create an enabling environment for investment and expand opportunities for the people of Niger State.