Flour Mills sets N160bn for new 5,200 hectares sugar cane expansion project

By Kayode Tokede

Flour Mills of Nigeria Plc has announced the upland acquisition of an additional 5,200 hectares of land in Sunti Golden Sugar Estates located in Mokwa, Niger state, in line with its expansion plans.

The company also revealed that the total projected cost to achieve this bold plan is set at a minimum of about N160 billion, including the new Sugar mill at Nasarawa.

The news of the land acquisition by Flour Mills comes weeks after claims of involvement in price-fixing and arbitrary collusion to create sugar scarcity were made against the company in a letter written by the founder of the BUA Group, Abdulsamad Rabiu to the Minister of Industry, Trade and investment, Niyi Adebayo.

Abdulsamad in his letter added that among the three players in the Nigerian sugar industry, only BUA Sugar Refinery has made serious investment commitment to the backward integration strategy of the Nigerian Sugar Master Plan (NSMP).

However, the Company Secretary/ Director, legal services, Flour Mills of Nigeria, Mr. Umolu Joseph in a statement on Nigerian Exchange Limited (NGX) stated that the acquisition of the land is in line with the copany’s commitment to the backward integration strategy of the NSMP, and the overall growth vision of the Sugar industry in the country.

According to his statement, “In a move that further reaffirms its commitment to the backward integration strategy of the Nigerian Sugar master Plan, and the over growth vision of the Sugar industry in the country, Flour Mills of Nigeria Plc has announced the upland acquisition of an additional 5200 hectares of land at Sunti.

“With the acquisition, the total land size of Sunti Golden Sugar Estates has expanded substantially to 22,000 hectares of land, with the total land area under cane now coming up to 15,000 hectares. This development which will immensely increase the production capacity of the sugar estate will also translate to an attendant expansion of the sugar production capacity of the mill.

“Santi Golden Sugar Estates, which is widely regarded as the country’s premier greenfield investment in the sugar industry since its inception in 2012, is undoubted, a shining example of the Nigeria Sugar Mater Plan’s achievements and highlights the federal government’s commitment to attaining self-sufficiency in the production of sugar.

“The project is also a winning model that shows how corporate organizations in Nigeria can successfully partner with local communities for mutual growth. Akin to the first phase of the development plan of the estate, about 10 neighbouring communities who will be impacted by the additional land acquisition have fully signed up to the development plan of Sunti.

“These communities will now benefit from an additional 15 kilometers of all-weather, heavy-duty road that is already under construction, expanded youth job opportunities, including the extension of our out-grower scheme that empowers farmers, and a number of other social infrastructure projects that will improve lives.

“To emphasise the importance of the sugar value chain, and in support of the Government’s overall strategy of raising the profile of agriculture while diversifying the economy, Flour Mills has effectively unveiled an elaborate but cautious plan to continue to deliver on its commitment to Nigerians.

“Once fully developed, it is projected that Golden Sugar Company, FMN’s subsidiary and operator of the estate, will have 25,000 hectares of land under cane, including the earlier announced proposed investments in Nasarawa State. This will result in the production of approximately 250,000 tonnes of sugar per year, significantly increase local sugar production, reduce dependence on food imports, and save foreign exchange.”

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