NSMP PROJECTS UPDATE

                STATUS OF ON-GOING SUGAR PROJECTS UNDER NSMP 

1. DANGOTE SUGAR PROJECTS 

       A. Savannah Sugar Company Limited, Numan, Adamawa State

• Location: Numan, Lamorde LGA, Adamawa State
• Coordinates: Latitude:9⁰ 35.398’N; Longitude: 11⁰54.707’E (Elevation: 153m ASL)
• Year of Establishment: 1976 (Privatised in 2003)
• Available Land: 12,500ha (Actual land covered by C-of-O is 32,000ha)
• Land Developed: 10,500ha (in 2020)
• Land Under Cane: 7,090ha ( July, 2020)
• Outgrower Farmers: 292 Outgrower Farms: 307ha (Outgrower scheme has been in operation for over 10years)
• Mill Capacity: Mill optimisation to 3,500TCD concluded in 2019. Currently being upgraded to 6,000TCD. This is due for commissioning in 4^th Qtr 2020)
• Jobs Created: 5,821 (December, 2019). 9,000 by 2024
• Current Status: Field expansion and installation of irrigation infrastructure in 3,100ha to get 10,500ha of cane field to feed 6,000TCD mill is target set for 2020/2021. 40% growth in Outgrower farms (307ha to 500ha) planned simultaneously.
• Sugar Produced 2019/20 crushing season: 21,479MT
• Expected Sugar Output at full capacity:
• Phase 1: From 6,000TCD mill – 85,000MT
• Phase 2: Dangote Adamawa Sugar project (2020 -2024) will involve the installation of 12,000TCD mill will produce 120,000MT sugar from about 18,000ha of cane fields. Centre Pivot System and Drip Irrigation systems will be provided to maximise cane yields.

 ESTATE DEVELOPMENT    

 Estate Road network – 20km; Staff Housing (630 existing units)

 CSR PROJECTS                 

N88million spent on CSR projects: Estate school and other schools in catchment area and social amenities in host communities. Fully functional Health Clinic for Estate Staff and Communities offering free services

 

B. GREEN FIELD PROJECT

Nasarawa Sugar Project, Tunga, Nasarawa State

• Location: Tunga, Awe LGA, Nasarawa State
• Coordinates: Latitude: 8⁰ 01.360’N; Longitude: 9⁰ 23.353’E
• Elevation: 90m ASL
• Available Land: 40,000ha
• Land Developed: 660ha (July, 2020); 3,000ha in 2021, 6,000ha in 2022, 6,000ha in 2023. (Cumulatively about 15,000ha should be in place)
• Land Under Cane: 65ha (Centre Pivot System (CPS) irrigation) nursery
• Mill Capacity: 12,000TCD mill (Phase 1).
• Current Status: Field development and contract award for machinery.
• Jobs: 520 (2020); 2,550 (2021); 4,750 (2022)
• Expected Sugar Output: 180,000MT/annum (Phase I).
• Expected Date of Commissioning: 2023 (Phase I)
• Procurement of machinery/equipment for a 12,000TCD mill
• Heavy earth moving equipment for land clearing and civil works for water channels.
• Provision of more efficient irrigation systems – Centre Pivot and Drip Irrigation

ESTATE DEVELOPMENT (December, 2019)

Phase 1 consisting of: Bulk fuel storage; Office blocks- 20units; Warehousing &workshop; Medical Facility; Water treatment plant; Water distribution network; Electrical reticulation – 1,000KVA and Staff Housing – 140 Units (in progress)

CSR PROJECTS (December, 2019)

N230m spent on: Boreholes, Tank Stand, Solar power; Renovation of School buildings, Health facilities; Construction of new Classrooms, Staff Quarters for Health Workers, Motorized Boreholes, Mosques all in Tunga and environs

 

2. BUA SUGAR PROJECTS

     A. Lafiagi Sugar Company Lafiagi, Kwara State

• Location: Lafiagi, Edu LGA, Kwara State
• Coordinates: Latitude: 8⁰ 52.278’N; Longitude: 5⁰ 24.636’E (Elevation: 79m ASL)
• Year of Establishment: 1992 (Privatised in 2008)
• Available Land: 19,950ha
• Land Developed: 6,500ha (May, 2020)
• Land under Cane: 2,220 ha (2020 target)
• Outgrower Farmers: Yet to take-off
• Mill Capacity: 10,000TCD Integrated Factory is under construction/installation. (70 – 80% achieved on the average in most sections). Ethanol Distillery 100% installed.
• Factory will produce sugar, ethanol and co-generate electricity.
• Jobs created: 3,800 (2020). 14,000 by 2024
• Current Status: Field expansion and Machinery installation on-going.
• Expected Sugar Output: 120,000MT/annum
• Expected Date of Commissioning: 4^th Quarter 2020

ESTATE DEVELOPMENT (December 2019)

235km of Plantation road network (connecting 15 communities/villages in the LASUCO estate). Staff Housing units – 66 completed and 72 under construction. Medical & educational facilities and 3km Airstrip commissioned.

CSR PROJECTS

N220 million in 3years on: Road network; Ramadan gifts for Lafiagi, Shonga and Tsaragi  Emirates; 7.5km By-pass road; Sponsorship of sporting competitions and Provision of support for educational institutions

B. Lafiagi Additional (Shonga) Kwara State

Company has procured additional 10,000ha in Shonga to add 82,500MT Sugar by2024. Land development has commenced. Project will create 1,685 jobs.

Projected date of commissioning: 2023/24

 

3. GOLDEN SUGAR COMPANY POJECTS (AFFILIATE OF FLOUR MILLS GROUP)

        A. Sunti Golden Sugar Estate (SGSE), Sunti, Niger State

• Location: Sunti, Mokwa LGA, Niger State
• Coordinates: Latitude: 9⁰ 6.744’N; Longitude: 5⁰ 13.494’E (Elevation: 75m ASL)
• Year Established: 2010 (Old Sunti Sugar Project established in 1974 Privatised in 2005)
• Available Land: 7,000ha
• Land Developed: 3,455ha (March 2020)
• Land Under Cane: 3,205ha (March 2020)
• Outgrower Farmers: 115 (Pilot Scheme). Outgrower Farmers: To cultivate 141ha
• Mill Capacity: 3,500TCD
• Sugar Produced 2019/20 crushing season: 15,860MT
• Jobs created: 4,500 (5,600 by 2024)
• Current Status: Field expansion and consolidation.
• Expected Sugar Production at full capacity: 50,000MT/annum.
• Expected Date of Commissioning: Factory commissioned in March, 2018

ESTATE DEVELOPMENT

Maintenance/Fortification of 35km Flood protection Dykes. In 2019, about 20km of dyke illuminated for easy patrols; 400km Road network; 12 Irrigation pump stations; 5 Drain pump stations; 2km Plantation airstrip commissioned;  281 culverts and 300km drains; 30km Electricity network and  200 housing units for staff

CSR PROJECTS

N490m spent as at 2019 on: Work opportunities through use of local contractors for various projects; 30km access road to Mokwa as well as internal roads; Provision of boreholes to 6 villages; Sponsorship of annual sporting competitions; Construction of 3 schools; Provision of school benches materials and teachers; Aquaculture scheme with 4 ponds to produce 20tons of fish on a 6-month cycle.

B. Toto, Nasarawa State

GSC is processing application for another project site to plant 13,500ha cane fields and produce 147,610MT of sugar by 2024. 7,415 jobs will be created.

Projected for commissioning: 2022/23 season.

 

4. GREAT NORTHERN AGRIBUSINESS LIMITED (GNAL), GAGARAWA, JIGAWA STATE

Operators: GNAL is a wholly owned subsidiary company of Lee Group

Year Established: 2017

Available Land: 12,900ha

Land Cleared: 300ha (December 2019)

Land Developed: 300ha (December, 2019)

Land Under Cane: 100ha.(December, 2019)

Mill Capacity: 5,000TCD (Phase 1) & another 5,000TCD (Phase 2)

Expected Sugar Output: 75,000MT/annum (1^st Phase)

Current Status: 300ha fully developed. 100ha nursery planted. Company procured Tissue Culture (TC) seedlings from Zaria Bio-factory. Two water reservoirs (3,000cubic metres & 10,000cubic metres, respectively) completed and connected. 12nos boreholes completed. The laying of irrigation pipes and construction of farm access roads are on-going. Company plans to construct 18km water conveyance canal from Hadejia River to the project to address water supply needs.

Factory Site: Construction of Phase 1 Ware house and Admin blocks on-going. 50 nos flats for staff accommodation near completion.

Expected Date of Commissioning: 2022

 

5. MINI SUGAR PROJECTS

A. Oyo Sugar Processors Limited, Iseyin, Oyo State – 300TCD Mill

The project is owned by Sugarcane Cooperative Society of over 200 farmers. The Council facilitated its machinery acquisition through BOA. Messrs Ashoka Machine Tools Corporation, India – supplied the 300TCD mill at a cost of US$2.13m. Erection and installation of the mill started April 2019. Subsequently, the Sugar Council engaged a reputable Project Consultant – J. P. Murkerji & Associates who evaluated work done and equipment supplied for the project in December, 2019 and submitted that total budgetary funds required to complete balance works and up-grade to plantation white sugar vacuum pan boiling system:

Expected date for commissioning: Q1 2021

 

 B. Goronyo Sugar Factory Limited, Goronyo, Sokoto State – 600TCD Integrated Mill for Sugar and Ethanol

Sokoto State Government and a group of farmers are floating this project. NSDC signed an MOU for the provision of collateral by the State Government for the machinery (estimated cost $4.5m) to be funded from Council’s Investment Fund in BOI. NSDC’s support for the project stems from the provisions of the Nigeria Sugar Master Plan (NSMP). Council signed a tripartite MOU with the State Government and the project promoters for the provision of collateral by the State Government for the machinery September, 2018. Sokoto State Government subsequently issued N1.5billion worth of Stock as collateral for the project as well as cash payment of N200,000,000:00 to ensure the success of the project. The contract agreement for supply of machinery was signed with the machinery supplier (DistiChem of India) in November 2018, 2019. 15% of the total contract sum was paid in 2^nd Qtr 2019. Council subsequently engaged Messrs J. P. Mukherji & Associates (JPMA), a sugar industry consulting firm from India, as Project Consultants to supervise equipment manufacture, supply and installation. The company had had challenges in securing FOREX for the LC to pay the balance for the machinery through the commercial banks since January, 2020, a situation exacerbated by COVID-19.  Total FOREX needed to complete the transactions is:

Expected date for commissioning: Q1 2021  

 

C. Cocaset Nigeria Limited

Messrs Cocaset Nigeria Limited is a privately owned company integrated mini sugar and ethanol facility in Ikaro, Effon LGA of Ondo State. The project which has the support of the Ondo State Government secured support and funding (N3.24billion) through the Focus Labs intervention scheme of the Economic Recovery and Growth Plan (ERGP) in the Presidency. The financing would be through the CBN’s Real Sector Support Fund (RSSF) Scheme.  The issue of Guarantee for the drawdown from the ERGP loan later arose which necessitated the Council to convene a meeting which was held in April, 2019. The stakeholders (Sugar Council, Ondo State Government, NIRSAL, Cocaset Sugar, Unity Bank and the Office of SSA to President on ERGP) reached accord on a 30% Cash Guarantee which the Council would provide as collateral for the drawdown while 70% Guarantee will be provided by NIRSAL. Due to some irreconcilable differences between Unity Bank and Cocaset Nigeria Ltd, the latter decided to approach Union Bank of Nigeria Plc which agreed in principle to finance the project on the same terms agreed with Unity Bank. Council provided sundry technical and advisory services for the cultivation of the project’s 5ha cane nursery that had been expanded to 10ha.