Nasarawa Sugar Plantation Project – Dangote, Godwin Emefiele Speaks on
Nigeria’s Self-Sufficiency In Sugar Production
Emefiele also said the CBN would soon place wheat and sugar on its list of items that are not valid for foreign exchange (FX).He stated that the apex bank was interested in the project, adding that between $600 million and $1 billion is spent annually on the importation of sugar.
Emefiele, who was accompanied by the state Governor, Mr Abdullahi Sule; the Minister of Industry, Trade and Investment, Mr Niyi Adebayo, and the President/Chief Executive Officer, Dangote Group, Alhaji Aliko Dangote, pledged support for the $500 million projects, which is expected to commence production by 2023.
He said in line with the pronouncement of the president on local food production and self-sufficiency, the sugar complex deserved the government’s support.
Emefiele assured Dangote that CBN would provide forex for the importation of equipment for the project.On the planned import restrictions, he said: “And let me say this; we are looking at sugar and we are looking at wheat. We started a programme on milk about two years ago and eventually, these products will come onto our FX restriction list.
“We just want to see to what extent we see the traction that is coming from those currently importing those items. We are putting their feet on fire to say we must all work together to produce these goods in Nigeria rather than import them”.On how much the CBN could commit to the sugar project, Emefiele said: “We have not made up our mind but as you heard from Dangote, it’s a project of about $500 million.
“And if you convert that in naira, you know what that is. I know he’s going to commit some equities to it. From there we will determine the shortfall and we will come in through intervention through the banks.“Of course, foreign currency will be provided as long as it is for the importation of equipment for the project through the banks for whatever loans required.
“And we will gradually begin to restrict allocation of FX to those who want to import sugar until we achieve these results.”Emefiele thanked Dangote for supporting the government’s backward integration programme.
He described the 60,000-hectare sugar complex as a big project that is unprecedented.He said: “This is four to five times bigger than the sugar project Buhari commission in Niger State two years ago.”He stated that the factory would create jobs and increase revenue for the state as well as boost its economic viability.
Dangote, however, said the project had the prospects of providing about one-third of the country’s sugar consumption, adding that the initial investment will be about $500 million.He said the target was to achieve about 250 million tonnes.
“That’s why you see everybody here,” he added.According to him, the project will generate 150,000 jobs within and outside the state to help solve employment challenges.
He said the project would also help solve the challenges of power in the state, as it will generate an excess of about 90 megawatts of electricity to power the state, using ethanol.He said: “To the state, it means the place will be up and running. I don’t think there will be shortages of power in Nasarawa State.”
Dangote also thanked the federal government for introducing the National Sugar Master Plan, describing it as a good policy that encouraged players in the sector to embark on backward integration, “not just for us to make money from sugar refinery.”
He described Emefiele as “not just governor of the CBN but a development governor because he’s just not looking at monetary policy but also what he can do to support the naira because he has a problem today meeting up with the demands of imports.”Dangote expressed optimism that the federal government’s continued support for projects like his will strengthen the naira in the long run.
He said: “The CBN not only want to support the naira but also to see that jobs are created.“You can only create 100 million jobs of the federal government through these kinds of projects.”
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