Why Nigeria missed sugar master plan implementation targets
Key indicators for measuring the success of the implementation of the Nigerian Sugar Master Plan (NSMP) show that Nigeria is behind all the set targets to be achieved by the middle of the 10-year lifespan of the plan.
The main objectives of the NSMP include; to raise local sugar production to attain selfsufficiency, create large number of employment opportunities, significantly reduce sugar import dependency and contribute to production of ethanol and generation of electricity.
By 2010, the NSMP was estimated to cost $3.1 billion to achieve the sugar master plan aimed at 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.
Other benefits included generation of 411.7 MW of electricity annually, production of 1.6 million tonnes of animal feeds annually, creation of 37,378 permanent jobs, creation of 79,803 seasonal jobs, saving of $350$500 million in foreign exchange on sugar imports annually and saving $65.8 million in foreign exchange fuel imports annually.
Mid-term review of the implementation report showed that as at 2016, the plan had not achieved the targets set, though considerable achievements were recorded.
However, when these achievements are compared with the projections of the plan, the success rate is below average.
For instance, the plan projected that by 2016, there would be five new projects in the sugar sector in the country, up from one that existed in 2013. Within the period, four new projects were recorded.
The plan 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.
Mid-term projection of the plan was that Nigeria would have 39, 200 hectares of land under sugar cane cultivation; from 3, 600 in 2013, but only 9,000 was achieved by 2016.
Sugar production was projected to hit 145,300 by mid-term of the implementation of the master plan, up from 6, 000 in 2013 but 21, 000 metric tons of sugar production was recorded in 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.
Out-growers farms stood at 281 as at 2016, from 81 available in 2013, below the 3, 250 projections in the plan.
The report outlined some of the successes recorded during the mid-term implementation period, including the attraction of N157 billion as new investments to the sector.
The National Sugar Development Council (NSDC) said the establishment of a new 50,000 tons per annum sugar estate at Sunti was perhaps the best investment in the sugar sector during the period under review.
The report showed that 9,000 hectares of land had been brought under cane as at 2016, being an increase of 250 per cent from 2013, when the Plan commenced.
The report also showed that 481 hectares of out-grower farms supplying cane to sugar estates had also been in place, up from 81 hectares in 2013, being 600 per cent increase.
The industry created 7, 850 jobs, up from a total of 3, 500 employed by all the refineries as at 2013, and representing 224 per cent.
25,000 metric tons of sugar was delivered in the 2016 crushing season, up from 6,000 metric tons recorded in 2013 season) and expansion of Sugar cubing and packaging investments with five new packaged sugar brands introduced into the market.
The report showed that all the refineries established sugar packaging and cubing units while two new companies, McNichols and Dogan’s, began operations at this downstream segment of the sugar value chain, leading to the founding of a Packaged Sugar Producers Association of Nigeria (PSPAN).
On why the NSMP performed below average, the mid-term implementation report stated that many projects that would have raised the implementation profile of the NSMP were stalled by government and host community’s unwillingness to give out land.
The report stated that Dangote Sugar Refinery’s acquisition of 6, 500 hectares of land in Guyuk for expansion of the Savannah Sugar Company Limited Numan project stalled by “untenable” demands of local community leaders.
Similarly, Dangote Sugar Refinery’s project site in Lau/Tau Taraba State, where certificate of occupancy had been issued, compensation had been paid and 20 hectares of nursery established for further development had been stalled due to “untenable demands” by state administration.
The report further stated that Dangote Sugar Refinery’s proposal to establish a sugar estate in Zaria Kalakala, Kebbi State was stalled by political elite interference and demands after the company had undertaken preliminary perimeter surveys and initiated action for topographical and soil surveys.
The Sugar Council also said the establishment of a new green field project by the Great Northern Agribusiness Limited - Lee Group, a Kano-based conglomerate had been disrupted by political elite interference.
The Council also said Golden Sugar Estate, Sunti also witnessed many disruptions during its development and even as recent as March 22, 2017, requiring police and local chiefs interventions.
“The intention of the company to expand its cane fields had stalled due to such hostile and anti-investment sentiments,” the Council said.
BUA Group community hostilities operations at its project Lafiagi Sugar Estate.
Part of the Backward Integration Plan was ban on sugar in retail packs designed to encourage operators in the downstream end of the sugar value chain to add some value and create jobs.
The Sugar Council reported success of the ban but regretted that St. Louis cube sugars are still being smuggled into the country, threatening the businesses of local cubing and packaging companies.
The Minister of Industry, Trade and Investment, Okechukwu Enelamah, who was at the public presentation of the status report on the mid-tern implementation of the NSMP, said Nigeria must get the sugar revolution right just as she did in the cement sector.
He said the value of getting it right is enormous in an economy as large as Nigeria’s with a huge market unrivalled in Africa.
He said revolutionising the sector will have huge effects on job creation and reduction on foreign exchange for sugar imports.
He pledged federal government commitment to assist companies involved in backward integration in the sugar sector of the Nigerian economy to overcome their challenges.
The Executive Secretary of the National Sugar Development Council (NSDC), Dr. Latif Busari described the prospects for the effective implementation of the NSMP over the next five years as “bright.”
He said the Council has evolved new strategies for effective implementation going forward, including increased inter-agency cooperation and sanctions for defaulters. reported against site in