At its 18th Annual General Meeting (AGM) held in Lagos, Dangote Sugar Refinery Plc (DSR) unveiled an ambitious plan to significantly increase its production of refined sugar through its Backward Integration Programme (BIP). Chairman Aliko Dangote announced the company’s goal of producing 700,000 metric tonnes of refined sugar from locally grown sugarcane over the next four years.
This announcement comes as DSR reported a notable increase of 20.1 percent in its first-quarter revenue for 2024, reaching N122.7 billion, according to figures released by the Nigerian Exchange.
In alignment with the Federal Government of Nigeria’s policy guidelines, Dangote emphasized the company’s commitment to enhancing its Backward Integration Project (BIP) by deploying and reviewing project strategies to ensure efficient delivery. The projected production of 700,000 metric tonnes aims to meet 50 per cent of the current market demand for refined sugar, marking a significant step towards achieving the company’s long-term objectives.
Dangote highlighted the importance of the 10-year sugar development plan, which aims to produce 1.5 million MT of sugar annually from locally grown sugarcane. He expressed optimism about the progress of operations at various sugar production sites, while also addressing challenges such as community payment issues affecting the Dangote Taraba Sugar Limited project.
Despite facing challenges such as inflationary trends and lack of liquidity, Dangote emphasized ongoing efforts to secure funding for the development of the Nasarawa Sugar Company Limited project. The company remains committed to the Backward Integration Programme, with over $700 million expected to be invested in the initiative.
In addition to its domestic efforts, Dangote Sugar (Ghana) Limited was established as a subsidiary to expand the company’s presence in the sugar industry across Africa.
Group Managing Director/CEO Ravindra Singhvi reiterated the organization’s determination to achieve its business targets despite challenges such as foreign exchange scarcity and rising raw material costs. Singhvi emphasized the focus on enhancing supply chain processes, optimizing costs, and improving operational efficiencies to drive the Sugar for Nigeria backward integration project.
The ambitious plan outlined by Dangote Sugar Refinery underscores the company’s commitment to increasing local sugar production and contributing to Nigeria’s economic development while addressing challenges in the sugar industry.