Dangote Sugar Refinery Plc has announced that it plans to spend $1bn on the expansion of its sugar factory and cultivation of the sugarcane plantation.
Danagote was one of the three sole importers of sugar named by the Central Bank of Nigeria (CBN).
As reported by Bloomberg, the Chief Executive Officer of Dangote, Ravindra Singhvi, disclosed this ex[pnasion plans during an investor conference call on Thursday.
He stated that Dangote Sugar had put more than 100,000 hectares of land under cultivation to grow sugarcane for local sourcing of inputs.
Singhvi was quoted as saying, “The plantations in Adamawa and Nasarawa will be ready by 2023 while work to almost double the capacity of a sugar factory in Adamawa to 6,000 tonnes cane-crushing-per-day is ongoing.”
The firm plans to raise capacity to 1.5 million to 2.0 million tonnes of refined sugar annually by 2024, from 403,846 tonnes as of June.
The sugarcane plantations will enable Dangote Sugar to source inputs locally, boost its production and increase sales as Nigeria aims to end the importation of sugar to conserve foreign exchange.
The CBN had said earlier in April that it would cut forex supply for wheat and sugar imports but last month allowed only Dangote Sugar and two other companies to import the product.
The bank said the reason for giving them an import quota was because the companies had made some progress in local sourcing of raw materials.