How Nigeria can achieve self sufficiency in sugar production

Nigeria, known for its rich resources, is taking significant strides towards achieving self-sufficiency in sugar production. Dangote Sugar Refinery, a major player in the industry, is leading the charge in this endeavor. In a recent interview with CNBC Africa, Ravindra Singhvi, the Group Managing Director and CEO of Dangote Sugar Refinery, shed light on the progress and challenges faced in Nigeria's quest for food self-sufficiency. The National Sugar Master Plan, initiated in 2012 by the federal government, laid the foundation for the country's journey towards self-sufficiency. Dangote Sugar Refinery, in alignment with this plan, has set ambitious targets to produce 1.5 million tons of sugar annually. Investments have been made in the backward integration programs, with a focus on growing sugarcane in their own estates. Singhvi highlighted the company's commitment to producing 5.5 hundred thousand tons of sugar by 2024 through various expansion projects. Despite facing obstacles such as the COVID-19 pandemic, currency devaluation, foreign exchange availability, and supply chain disruptions, Dangote Sugar remains resilient and determined to meet its targets. The progress of integration by major players in the sugar industry was also discussed. Dangote Sugar Refinery's integration efforts have been commendable, with significant investments in VIPs and a substantial increase in production. Singhvi expressed confidence in the company's strategic plans and reiterated their dedication to achieving long-term goals. The operational environment in the first half of the year posed challenges for the industry, including high energy prices, currency depreciation, and supply chain disruptions. However, Dangote Sugar Refinery managed to navigate these obstacles successfully, recording a 10% growth in sugar sales volumes. The company's focus on cost optimization and efficiency improvements has been instrumental in mitigating the impact on margins. Singhvi shared the company's financial performance, showcasing a healthy growth in the top line and profit before tax. Despite the challenging operating conditions, Dangote Sugar Refinery's revenue increased significantly, demonstrating effective cost management and volume growth strategies. Looking ahead, Singhvi presented a cautious yet optimistic outlook for the rest of the year. With global challenges such as the energy crisis looming, the company remains committed to meeting its quota and ensuring an adequate sugar supply for Nigerians. The CEO emphasized the importance of working efficiently to control costs and maintain strong performance in the upcoming months. In conclusion, Dangote Sugar Refinery's CEO reaffirmed the company's dedication to supporting Nigeria's journey towards food self-sufficiency. Despite the hurdles along the way, Dangote Sugar Refinery's resilience and strategic planning pave the way for a sustainable and thriving sugar industry in Nigeria.