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Backward Integration: Dangote Targets 700,000MT of Refined Sugar in Four years

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L-R: Company Secretary/Legal Adviser, Dangote Sugar Refinery Plc, Temitope Hassan; Group Managing Director/CEO, Dangote Sugar Refinery Plc, Ravindra Singhvi ; Executive Director, Dangote Sugar Refinery Plc, Mariya Aliko Dangote; and Chairman, Dangote Sugar Refinery Plc, Aliko Dangote, at the Dangote Sugar Refinery Plc 18th Annual General Meeting, on Tuesday, April 30, 2024 in Lagos.

 

Dangote Sugar Refinery Plc (DSR) has unveiled plans to produce 700,000 metric tonnes of refined sugar from locally grown sugarcane in the next four years, through its Backward Integration Programme (BIP).

Chairman of Dangote Sugar Refinery Plc, Aliko Dangote stated this at the company’s 18th Annual General Meeting (AGM) held yesterday in Lagos, just as the Nigerian Exchange released the company’s first-quarter result for 2024, indicating an increase of 20.1 per cent in its revenue to N122.7 billion.

Dangote, at the AGM, said in alignment with the Federal Government of Nigeria’s policy guidelines, DSR continues to focus on and enhance its Backward Integration Project (BIP) by deploying and reviewing project strategies to ensure efficient delivery.

He noted that the 700,000 metric tonnes would meet 50 per cent of the current market demand for refined sugar. According to him, the 10-year sugar development plan to produce 1.5 million MT of sugar per annum from locally grown sugarcane remains a germane roadmap to the attainment of the Company’s objectives.

Our focus is on achieving the revised targets set for DSR Numan Operations, Dangote Adamawa Sugar Limited, and Nasarawa Sugar Company Limited, while we are hopeful that the Taraba State Government will resolve the community payment issues that have led to the stoppage of activities at the Dangote Taraba Sugar Limited, Lau/Tau project.”

He added that “…During the year under review, despite the challenges we were faced with, the company significantly scaled up investment in the Backward Integration Projects with the ongoing expansion of the DSR Numan factory refining capacity from 3,000TCD to 9,800TCD year-end.

The factory will be increased with an additional 5,200TCD to 15,000 TCD (tonnes of cane crushed per day) eventually to meet the need in view of the massive land development activities also going on at the site. The aim is to achieve 24,200 hectares in total by the year 2029.”

He also emphasised that despite the adverse impact on the business environment by the continuous increase in the inflationary trend, lack of liquidity and FX to fund the company’s equipment import among others for the backward integration projects, concerted efforts are ongoing to secure the needed funds for the development of the Nasarawa Sugar Company Limited project at Tunga in Awe Local Government Area of the state.

This will enable the company to put in place the needed infrastructure for the eventual commencement of full-scale production and ensure that the Dangote Sugar Backward Integration ‘Sugar for Nigeria Project’ is achieved. In the end, over $700 million investment would be committed to the Backward Integration Programme,” he added.

Dangote said that the Dangote Sugar (Ghana) Limited, was established as a subsidiary of the Company during the year under review, in line with the plan to expand its presence in the sugar industry across Africa.

On outlook, he stated that “achievement of the goals of the Sugar Backward Integration Master Plan remains our focus. This will go a long way in delivering the anticipated benefits, especially in FX savings and cushioning its impact on our operations amongst other benefits to the company, all stakeholders, and the nation.”

Group Managing Director/CEO of Dangote Sugar, Ravindra Singhvi said, “Despite these challenges, we are resolute and focused on the delivery of our business targets in the medium to long term.”

He pointed out that “as we continue to navigate through the scarcity and high cost of foreign exchange, escalating costs of raw materials amongst others, our focus is to enhance the effectiveness of our supply chain processes, optimise cost, improve our operational efficiencies and delivery on our Sugar for Nigeria backward integration project.”

He said “the target is to produce a minimum of 1.5MT refined sugar annually from locally produced sugarcane at our integrated sugar production estates, which is expected to alleviate some pressure on costs and our demand for foreign currency.

Achievement of a sustainable business remains one of our key strategies and concerted efforts were made towards sustaining the achievements we have recorded in the past,” Singhvi added.

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Holiday Bonanza: Dangote Reduces PMS Price to N899.50k

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Dangote Petroleum Refinery has reduced the price of its Premium Motor Spirit (PMS) product to below N900 per litre, to provide much-needed relief for Nigerians ahead of the holiday season. Africa’s first privately-owned oil refinery, which previously lowered the price to N970 per litre on November 24, has now announced a new price of N899.50 per litre. This reduction is designed to ease transport costs during the festive period. In a statement issued by the Group Chief Branding and Communications Officer of Dangote Group, Anthony Chiejina, the company also introduced a special offer to further benefit consumers. In addition to the holiday discount, Dangote Petroleum Refinery is allowing consumers to purchase an additional litre of fuel on credit for every litre bought on a cash basis. To alleviate transport costs during this holiday season, Dangote Refinery is offering a holiday discount on PMS. From today, our petrol will be available at N899.50 per litre at our truck loading gantry or SPM. Furthermore, for every litre purchased on a cash basis, consumers will have the opportunity to buy another litre on credit, backed by a bank guarantee from Access Bank, First Bank, or Zenith Bank,” said Chiejina. The refinery also expressed its gratitude to Nigerians for their continued support as the country enters the festive season. Chiejina further emphasised the refinery’s commitment to ensuring Nigerians have access to premium quality petroleum products that are competitively priced, as well as environmentally and engine friendly. He highlighted that the refinery’s operations mark the end of Nigeria being a dumping ground forfor substandard and ‘blended’ imported products, which have posed significant risks to human health, machinery, and the environment. The Dangote Refinery, with a capacity of 650,000 barrels per day (BPD), is the largest single-train refinery in the world. It is fully capable of meeting 100% of Nigeria’s refined petroleum product requirements, with a surplus available for export.

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Gov. Yusuf accuses opposition parties of fueling political crisis in Kano metropolis

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Governor Abba Kabir Yusuf

 

 

Governor Abba Kabir Yusuf has accused actors in the opposition parties of fueling civic unrest and political instability in Kano.

Governor Yusuf pointed the accusing fingers while briefing journalists during the State Executive Council Meeting Wednesday, vowed to deploy drastic measures necessary to nip the resurgence of thuggery in the bud.

The Governor’s reaction follows the recent bloody crisis between some suspected political thugs who unleashed terror on another gang of politicians.

In a statement by Spokesperson of the Governor, Sanusi Bature Dawakin-Tofa, Governor Yusuf revealed that intelligence brief abreast with after the state security council held Tuesday clearly exposed the atrocities of those sponsoring unrest in Kano.

According to the statement, the Governor posited the elements in the opposition, who are not comfortable with the steady development, peace and stability in the state, embedded to provoke needless crisis.

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Gov. Yusuf however reassured determination of his administration to confront the challenges with equal force, insisted government would not henceforth, tolerate attempt by any elements to frustrate the enduring peace and tranquility in the state.

In the release, Governor Yusuf assured the resolution of the government to work with all the security agencies in the state to checkmate the excesses of the criminal minded elements being sponsored to cause problem.

Governor Yusuf will soon reopen the state own Reformatory Centre, at Kiru local government area as part of measures to rehabilitate and control drug abuse in the state.

During the Wednesday council meeting, the Governor also brief plans to inaugurate the newly constituted 46 of Shura Consultative Council compose of renowned Islamic Scholars, members of the academia, and other stakeholders.

To check unemployment, the Governor is determined to roll massive youth empowerment initiatives in the coming year to ensure that a significant per cent of the youth become self’relient.

 

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President Tinubu Arrives In Lagos Ahead Of Christmas Holiday

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President Bola Tinubu has arrived in Lagos from Abuja ahead of the Christmas celebrations.

The President was received at the airport by the Governor of Lagos State, Mr. Babajide Sanwo-Olu, along with other state officials.

He is expected to proceed to his private residence in the state.

His arrival follows the presentation of the 2025 budget to a joint session of the National Assembly on Wednesday.

He described it as the “Budget of Restoration: Securing Peace, Rebuilding Prosperity.” The proposal, he explained, is aimed at stabilizing the economy, fostering an equitable business environment, and promoting inclusive growth.

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