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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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Age Won’t Stop Atiku from Contesting 2027 Presidential Election- Campaign Director Replies Makinde 

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A two-time Director of Youth Mobilisation in the Atiku Abubakar Presidential Campaign in 2019 and 2023, Hon. Dimeji Fabiyi, has said that age cannot stop the former vice president from contesting the 2027 presidential election.

Fabiyi was reacting to the remarks by Governor Seyi Makinde of Oyo State on the criteria for presidential candidates.

Governor Makinde had insinuated that age was a limiting factor for presidential hopefuls in the party.

Though Atiku’s name was not mentioned by Makinde, Atiku, who is still nursing presidential ambition in the next general election, will be 81 years old by 2027.

Fabiyi in his response to Makinde, admonished the Oyo State governor “to devote more time to reading good books and familiarise himself more with intellectuals, instead of keeping the company of alcoholics, so that when next he speaks, he won’t be mistaken for someone who prides himself for drinking 40 years old whiskey.”

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FCT minister Nyesom Wike, who is a close ally of Makinde, had last year said he was drinking 40-year-old whiskey at the time Atiku lost the 2027 election.

Fabiyi also noted that ‘’Atiku is of sound mind and body, with the intellectual firmament that measures far ahead of Makinde.”

Fabiyi noted that while Atiku may be older than Makinde, he has the experience and a cosmopolitan ability to solve problems.

He said: “As a matter of fact, I challenge Seyi Makinde to an intellectual contest with Atiku, and we shall see how his arrogance and presumed youthfulness will be humbled.

“I have known Atiku for almost three decades, and I can tell you for free that he’s an avid reader. When Seyi Makinde is in town, he should seek out how resourceful and flourishing Atiku’s library is.

“Atiku is not a connoisseur of expensive wines and doesn’t keep the company of cringe drinkers. Rather, he’s a lover of books who reads widely.

“Unless Makinde believes that leadership is determined by aerodynamic strength, he should have been more guided before making a comment that makes him look like a clown.”

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INEC has declared Governor Lucky Aiyedatiwa the winner of the Ondo governorship election

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The Independent National Electoral Commission (INEC) has declared Lucky Aiyedatiwa of the All Progressives Congress (APC) as the winner of the Ondo State governorship election held on Saturday.

Aiyedatiwa defeated his closest rival, Mr Agboola Ajayi of the People’s Democratic Party (PDP), securing 366,781 votes to Ajayi’s 117,845. The APC clinched victory in all 18 local government areas of the state.

The Labour Party (LP) and the Zenith Labour Party (ZLP) polled 1,162 and 2,692 votes, respectively.

 

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Obasanjo Taunts President Tinubu, Labels Him “Baba-go-slow”

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Former President Olusegun Obasanjo

 

Former President Olusegun Obasanjo has criticized President Bola Tinubu, labeling him as “Baba-go-slow” and asserting that Nigeria’s failing status under Tinubu’s reign is “confirmed and glaringly indicated and manifested for every honest person to see.” The remarks were made in a statement released by Obasanjo’s Media Aide, Kehinde Akinyemi, on Saturday.

In his address titled “Leadership Failure and State Capture in Nigeria,” Obasanjo highlighted the detrimental effects of immorality and corruption on the nation. “The more the immorality and corruption of a nation, the more the nation sinks into chaos, insecurity, conflict, discord, division, disunity, depression, youth restiveness, confusion, violence, and underdevelopment,” he stated.

Obasanjo painted a grim picture of Nigeria’s current situation, attributing the nation’s woes to the leadership under President Tinubu. “Nigeria’s situation is bad. The more the immorality and corruption of a nation, the more the nation sinks into chaos, insecurity, conflict, discord, division, disunity, depression, youth restiveness, confusion, violence, and underdevelopment,” he said.

He further criticized Tinubu’s administration, stating, “That’s the situation mostly in Nigeria in the reign of Baba-go-slow and Emilokan. The failing state status of Nigeria is confirmed and glaringly indicated and manifested for every honest person to see through the consequences of the level of our pervasive corruption, mediocrity, immorality, misconduct, mismanagement, perversion, injustice, incompetence, and all other forms of iniquity.”

Despite his harsh critique, Obasanjo expressed a glimmer of hope for the future. “But yes, there is hope,” he concluded, suggesting that change is possible if the nation addresses its deep-rooted issues.

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