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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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Newly Assigned Kano Commissioner of Water Resources Orders Immediate Audit of State Water Board

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The Honourable Commissioner for the Ministry of Water Resources, Alhaji Umar Haruna Doguwa, has directed a comprehensive staff audit for employees working under the Kano State Water Board. This directive aims to enhance the working environment and ensure effective service delivery.

In a statement issued today by the Honourable Commissioner, Doguwa emphasized that the staff audit is intended to create a conducive atmosphere and an efficient working environment. “The staff auditing is aimed at providing a conducive atmosphere and effective working environment, which would result in effective service delivery,” Doguwa explained.

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The Honourable Commissioner also called on the affected staff members to fully support and cooperate during the auditing exercise. “I urge the affected members of staff to give maximum support and cooperation during the auditing exercise,” he stated.

The statement was signed by the Public Relations Officer, Rukayya Uba Sulaiman, who reiterated the importance of the audit in achieving the ministry’s goals.

The staff audit is expected to identify areas for improvement and streamline operations within the Kano State Water Board, ultimately leading to better service delivery for the residents of Kano State.

 

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Senator Sumaila Commends Appointment of Alhaji Nura Iro Ma’aji as Commissioner

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Senator Suleiman Abdulrahman Kawu Sumaila, representing Kano South Senatorial District has described the appointment of Alhaji Nura Iro Ma’aji as commissioner as well-deserved appointment.

Sumaila, in a statement he personally signed, said the appointment is a testament to Ma’aji’s unwavering dedication, exceptional resourcefulness and remarkable intellect.

“Your distinguished academic background and extensive political experience uniquely equip you to make impactful contributions to our great state. I am confident that your leadership will usher in innovative policies and initiatives aimed at addressing the challenges we faced and steering Kano towards brighter future.

“Throughout your tenure, it is essential to carry out your duties with diligence, integrity and strong sense of purpose, protecting the good name of your family and the esteemed legacy of your community will be paramount as you navigate the responsibilities of your new role,” he said.

Sen. Sumaila expressed gratitude to the Kano State Governor, Abba Kabir Yusuf for the gesture, saying by recognising such a potential form Sumaila community, and bestowed him with a slot of commissioner, the governor as set a precodent that will not only inspire the people of Sumaila but foster unity and ambition among them.

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Sumaila, therefore, assured Ma’aji of his commitment towards ensuring smooth working relationship with him for the overall development of Kano state, saying “together we can make a meaningful partnership that will deliver tangible results for our constituents, uplift our communities and ensure sustainable growth in Kano state.”

He appealed to the people of Sumaila, Kano South and Kano state in general to support the new commissioner with a view to discharging his responsibilities effectively.

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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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