Dangote Sugar Aims for Self-Sufficiency in Sugar Production
By Patience Ikpeme
Dangote Sugar Plc has set an ambitious target of producing 1.5 million metric tons of sugar annually from locally grown sugarcane. This goal aligns with the National Sugar Master Plan, which aims to make Nigeria self-sufficient in sugar production.
The company’s CEO, Ravindra Singhvi, announced this during the presentation of their 2023 full-year results. He highlighted efforts to achieve this target, including enhancing existing refinery operations and developing new greenfield sites, such as the Nasarawa Sugar Company Project.
Despite facing challenges like rising inflation and consumer income constraints, Dangote Sugar reported positive financial results for 2023. They achieved a 9% increase in group revenue, reaching N441.5 billion, and a significant 71.5% growth in recurring profit after tax, reaching N97.9 billion.
Looking ahead, the company plans to focus on improving supply chain efficiency to reduce costs and enhance overall operations. The long-term goal of the 1.5 million metric ton target, achieved through locally grown sugarcane, is expected to lessen reliance on foreign currency and reduce production costs.
Furthermore, Dangote Sugar announced a proposed merger with NASCON and Dangote Rice Limited, which they believe will be a significant step towards growth and innovation. This strategic move aims to position them to capitalize on future opportunities in the food industry.
The company has already submitted an application for approval to the Securities and Exchange Commission and remains confident about the merger’s potential to create long-term success and benefit all stakeholders.
Dangote Sugar said it remains committed to delivering high-quality products to its customers while contributing to Nigeria’s self-sufficiency in sugar production. They aim to become a leading player in the global sugar industry by achieving the goals outlined in the National Sugar Master Plan.
