By Steve Agbota
The agenda of the Nigeria Sugar Master Plan (NSMP)to churn out 1.797 million tonnes of sugar every year may have failed as the project currently lags in all of its set targets.
For instance, apart from its objective to ensure that the nation is self-sufficient in sugar production, the project was also billed to generate 411.7MW of electricity, produce 1.6 million tonnes of animal feeds, save the nation of $500 million in foreign exchange (forex) on sugar imports and equally save Nigeria of $65.8 million in fuel imports, all annually, as well as create 37,378 permanent jobs and 79,803 seasonal jobs.
But the recent midterm NSMP report revealed that as at 2016, Nigeria was behind in all the set targets to be achieved by the middle of the 10-year lifespan of the plan.
Recall that the Federal Government in 2013 entered into a tripartite arrangement with Dangote Sugar Refinery Plc, BUA Sugar Refinery Limited and Golden Sugar Company on the Backward Integration Programme (BIP) to boost NSMP implementation.
The objectives of NSMP were to step up the production of sugar for 10 years and eliminate the huge forex spent yearly on its import, create large number of employment opportunities and contribute to production of ethanol and generation of electricity.
When the idea of NSMP was mooted in 2010, the project was estimated to cost $3.1 billion with a view to bringing 250,000 hectares of land under sugarcane cultivation, establishing 28 factories of varying capacities, producing 1,797,000 tonnes of sugar annually and producing 161.2 million litres of ethanol annually.
But despite all the efforts made so far, the nation is said to be spending about N350 billion annually to import sugar.
The midterm NSMP report also revealed that the country is projected to have 39,200 hectares of land under sugarcane cultivation, from 3,600 in 2013, but only 9,000 was achieved by 2016, which means that the nation currently has a shortfall of 30,200 hectares.
Sugar production was also projected to hit 145,300 metric tonnes by mid-term of the master plan implementation, up from 6,000 in 2013. But 21,000 metric tonnes of sugar production was recorded in 2016, leaving another shortfall of 124,300 metric tonnes.
The master plan also projected the establishment of new or refurbishment of five sugar factories by 2016, up from one in 2013, but only two were recorded by 2016. Of the 16,236 projected jobs to be created by the middle of the implementation of the plan, only 7,000 jobs were recorded by 2016.
However, when these achievements are compared with the projections of the plan, the success rate is below average.
Daily Sun learnt that many projects that would have raised the implementation profile of the NSMP were stalled by smuggling, community hostilities, political interference and host community’s unwillingness to give out land to investors like Dangote and others.
Stakeholders said that about N190.3 billion ($501 million) worth of sugar was shipped into the country from Brazil between April 2016 and April 2017. Between March and April this year, 137,000 metric tonnes of raw sugar worth N23.7 billion ($73.4 million) were discharged at the seaport.
They said this is not too good for major players like Dangote, who recently signed a Memorandum of Understanding (MoU) with the Niger State government for the establishment of a jumbo $450 million state-of-the-art and fully integrated sugar complex in Minna, as they urged government to take proactive measures to tackle the issue.
Despite the ban on sugar to encourage operators in the sugar value chain, National Sugar Development Council (NSDC) regretted that St. Louis cube sugars are still being smuggled into the country, threatening the businesses of local cubing and packaging companies.
The Executive Secretary of NSDC, Dr. Latif Busari, said the council has evolved new strategies for effective implementation going forward, including increased inter-agency cooperation and sanctions for defaulters.
Speaking with Daily Sun, the acting Executive Director, Agricultural and Rural Management Training Institute (ARMTI), Dr. Olufemi Oladunni, said that Nigeria still has hope to achieve the set target in the sugar master plan, but the first thing is to develop value chain for sugar as a commodity right from production to the market.
He added: “Within, you talk about farmers, all the necessary inputs even the variety of sugarcane to plant (to be able to deliver the quality of sugar required) in terms of variety, quality and in terms of quantity per hectare. You have to develop that and you have to bring the farmers extension into it. You also encourage not just large scale sugarcane plantation but small scale SME to come into it and then, they will be able to provide their own support to the sugar master plan, which is the only way we can move on so that we will not continue lagging behind in that plan.”
He said Nigeria must have comprehensive look at the value chain for sugar by identifying different crops that can produce sugar at economic rate and then develop manpower to go along with it before Nigeria can achieve the sugar master plan implementation.
He said there could be some other crops like in some developed countries such as Switzerland, where they produce their own sugar from the sugar bee, which is different from sugarcane.
Saying Nigeria needs to look at that direction, the research and development component of the various crops that could give the right sugar needed.
According to him, government should adopt the same method the CBN anchor borrower for rice in sugar. Saying the host communities can also become farmers and involve in the chain instead of disturbing those who want to farm.
Director General, Nigerian Association of Chambers of Commerce, Industry, Mines and
Director General, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Emmanuel Cobham said the policy is good but the players involving in the policy are few, saying Dangote tops them and some other small players.
He urged the National Sugar Development Council to develop policy that allow for more job creation, allow local players to get more useful into the field. If this allowed, he said those who are into agrochemicals can involve, there would be more job created, the market will expand and the if the market is expands, then it good for the economy.
According to him, sugar production companies are there to make profit and everybody want to monopolized market. He said there is need to think less the monopoly of market and think more of the satisfying the need of the customers base and then thinking more about creating employment.
He added: “The blame might not be put on customs for the sugar importation unless there is an evidence that allow importation of sugar because it could be coming out from illegal routes because when one thing is banned, it does not take the normal routes to come in.
“And when it does not take the normal routes to come in, it means there are people who are helping them to smuggle them into the country. Once you place a ban, it means it become a scarce commodity. The customs should be aware on how the commodity come into the country and it means that we have very porous routes. We should know we have people who are in the market to circumvent because they want to make money.”
Agriculture (NACCIMA), Emmanuel Cobham said the policy is good but the players involving in the policy are few, saying Dangote tops them and some other small players.
He urged the National Sugar Development Council to develop policy that allow for more job creation, allow local players to get more useful into the field. If this allowed, he said the those who are into agrochemicals involved, there would be more job created, the market will expand and the if the market is expands, then it good for the economy.
According to him, sugar production companies are there to make profit and everybody want to monopolized market. He said there is need to think less the monopoly of market and think more of the satisfying the need of the customers base and then thinking more about creating employment.
He added: “The blame might not be put on customs for the sugar importation unless there is an evidence that allow importation of sugar because it could be coming out from illegal routes because when one thing is banned, it does not take the normal routes to come in.
“And when it does not take the normal routes to come in, it means there are people who are helping them to smuggle them into the country. Once you place a ban, it means it become a scarce commodity. The customs should be aware on how the commodity come into the country and it means that we have very porous routes. We should know we have people who are in the market to circumvent because they want to make money. It is unfortunate that Nigeria is producing less sugar.”