The Board of DSR has completed all winding-up proceedings for its Backward Integration Project in Niger State, You will recall that 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.
Dangote Sugar Refinery Plc has successfully wind up its sugar business in Niger State – under the Dangote Niger Sugar Limited.
According to a brief 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.