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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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Sallah Durbar: Cancellation spikes security scare as businesses suffered setback in Kano.

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Unquantifiable economic lose were recorded in Kano over the weekend following the sudden cancellation of the historical Salah Durbar festival.

Although, the Sallah celebration was conducted largely peaceful even after the ban on Durbar, but the security alert invoked by the police had scared visitors and potential investors.

The UNESCO certified global event left about 160 foreign tourists who had flew into Kano stranded after the sudden imposition of ban on the traditional heritage, Kano State History, Culture and Tourism Bureau, confirmed.

Kano Durbar, the largest convergence of horse rides globally dated back over 500 years, attracted international recognition thereby making the UNESCO representative list of intangible cultural heritage of humanity in December 2024.

An entrepreneur, Ahmad Sarki Norma who lamented the economic lost in Kano at the weekend as a result of cancellation of Durbar worried over the overbearing influence and interest on Kano emirate.

According to Sarki Norma, besides the wreckage of profit on micro economic, the livelihood of local artisans who specialize on weaving, and fabrication of horse artifacts and horsemen costumes during Salah Durbar season have been crippled.

” I know that virtually all the costumes we wear during Durbar are 90% handmade. That means, the event usually stimulates huge business activities and opportunities for the local fabricators. So when you cancel the Durbar you are killing and sending them out of business.

” Secondly, when you look into sales of pure water on those five days it’s not an ordinary economy. People come from the villages with 5,000 naira to sell bottle water and beverages and make a lots of profits.

On traditional wears, Sarki Norma said ” a normal traditional toberida, costs at least N150,000, which is almost $80. And you’re expected to wear four of it to the right. And also the horse dress, you can get a horse dress of N4 million, you can get a horse dress of N30,000.

“I can calmly say I spend nothing less than Never2.5 million for these four rides on my own. But when you come to the horse, I have a $10 million horse, I have a $20,000 horse, which are specifically meant for just riding”.

Also speaking on the economic impact, Ahmad Abba Yusuf, Executive Secretary, History and Culture Bureau, Kano, said transport, tourism, and food industries recorded the highest lost in the wake of the Durbar cancellation.

Yusuf equally ascerted that several billions of naira have been lost in the tourism sector including the production and marketing of local materials for the horses and horsemen.

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“We do have over 74 traditional title holders that come in a cluster, in groups. So each group contains a minimum of 20 horse riders. So if you can multiply that, if you can be able to deduce the amount of materials for the horses and horsemen, this will be the cost for the Darbar.

“And other local economy, those are the indirect costs attached to it. The people, small-scale traders selling foods, drinks, and other consumables during the Darbar festivities. And also the transport and hospitality accommodation for the tourists and other local royal guests during the Darbar”. Yusuf noted.

Sharing experiences during a media interaction Kano, a tourists in Kano on Thursday, a tourist Virgil Taylor who came from United States of America expressed deep disappointment that his hope to watch the historical durbar was dash.

Taylor who is visiting Kano and Nigeria for the first time to relish the beautiful African culture, worried that after a whole year preparation for the long trip to Africa, he only got to know about the cancellation after arriving Kano.

Taylor, though believed every disappointment is for a purpose, he was delighted to have catched the glimpse of the Emir Muhammadu Sanusi II in a large population during Sallah Day, which he said remain a memorable historical opportunity for him.

“I started planning for this trip over a year ago when I was in Ghana and so I kept doing my research and I understood that there were Durbar that occurred else where throughout Nigeria, but in particular Kano.

“So I started making my preparations and I actually flew in last Friday, I think that was the 27th of March or 28th. I arrived. And until then I learned that the Durbar is not happening again. I had no idea that it had been cancelled before then.

“So yeah, I was disappointed, but I was assured that it would still be a good trip for me and it has been, it’s been extraordinary. The people of Kano have been just very wonderful”. Taylor said.

Another Tourist, a UK based, Lekan Yushau Okanlawon who also flew from London for the Durbar regretted how the cancellation crippled his plans to register the festival on the Guniess book of record for a largest horse proccession in the world besides the UNESCO’s recognition.

Also narrating disappointment, Okanlawon narrated how he had invited friends who are polo players in the UK to join the Durbar procession essentially to witness for the first time, a convergence of over 5,000 horses riding behind a single person.

“So when on the 6th of December, 2024 that UNESCO certified the Kano Durbar and incorporated it into their global heritage program, many of us were happy and we have something internationally recognized to show to our friends abroad.

” So I started discussion with a couple of my friends who have polo teams in the UK. By the way, I came in on the 23rd into Lagos and I flew into Kano on the 24th. I didn’t get to know the Durbar was cancelled until I got there. So I had to quickly send an SOS message to my friends. They don’t have to come again.

“Many of them wanted to come because the only horse riding experience many of them had prior to now has been riding horse for a bit of leisure and more polo. So they have never ride a horse in a long procession.

“So my target with a couple of other friends in Kano and outside Kano that were working together is to ensure that in the next one year we put Kano Durbar procession on the Guinness World Record because Kano has the largest gathering of horse gathering in the world”. Okanlawon added.

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Tinubu’s Political Adviser, Hakeem Baba-Ahmed Resigns

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Dr Hakeem Baba-Ahmed, the political adviser to President Bola Ahmed Tinubu, has resigned, it was reliably learnt.

Impeccable sources in the presidency confirmed yesterday that the former spokesman of the Northern Elders Forum (NEF) tendered his resignation about two weeks ago.

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The sources said Dr. Baba-Ahmed did not provide details of the reasons for his decision, only stating that it was on personal grounds. However, as of the time of filing this report, it was unclear whether the presidency had accepted his resignation.

Baba-Ahmed was appointed Special Adviser on Political Matters in the Office of Vice President Kashim Shettima in September 2023.

 

Daily Trust

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Islamic Scholar Dr Abdul Aziz Dutsen Tanshi Is Dead

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A prominent Islamic cleric, Imam Dr. Idris Abdul’aziz Dutsen Tanshi, has passed away.

Sheikh Muhammad Kabir Haruna confirmed his death on his verified Facebook account late on Thursday night.

Late Imam Dutsen Tanshi was a leading Islamic scholar in Africa, widely recognized for his contributions to disseminating Islamic teachings across the continent.

In addition to his scholarly work, Imam Idris was also a businessman and farmer.

He had been contending with ill health for some time, and recently traveled abroad for medical treatment during the last Ramadan.

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His funeral will be held at 10:00 a.m. on Friday at the Eid Mosque in Games Village, Bauchi state.

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