Dangote Sugar Refinery Aims to Produce 700,000 Metric Tonnes of Refined Sugar by 2028

Dangote Sugar Refinery aims to produce 700,000 MT of refined sugar from local sugarcane by 2028, meeting 50% of Nigeria's demand and reducing reliance on imports. This ambitious backward integration project supports economic growth and job creation.

author-image
Israel Ojoko
Updated On
New Update
Dangote Sugar Refinery Aims to Produce 700,000 Metric Tonnes of Refined Sugar by 2028

Dangote Sugar Refinery Aims to Produce 700,000 Metric Tonnes of Refined Sugar by 2028

Dangote Sugar Refinery Plc (DSR) has announced plans to produce 700,000 metric tonnes of refined sugar from locally grown sugarcane by 2028 under its Backward Integration Programme (BIP). The company's Chairman, Aliko Dangote, revealed this target at DSR's 18th Annual General Meeting held in Lagos, Nigeria.

Dangote stated that the 700,000 metric tonnes would meet 50% of the current market demand for refined sugar in Nigeria. The ambitious goal is part of the company's 10-year sugar development plan to produce 1.5 million metric tonnes of sugar per annum from locally grown sugarcane, consolidating DSR's position as a leading integrated sugar company in Africa.

Despite challenges such as the continuous increase in inflation, lack of liquidity, and foreign exchange constraints to fund equipment imports for the backward integration projects, DSR remains committed to achieving its BIP goals.

"The achievement of the goals of the Sugar Backward Integration Master Plan remains the company's focus, which is expected to deliver benefits in terms of foreign exchange savings and cushioning its impact on the company's operations, stakeholders, and the nation," Dangote said.

DSR has also established a subsidiary, Dangote Sugar (Ghana) Limited, to expand its presence in the sugar industry across Africa. The company is focused on enhancing its supply chain processes, optimizing costs, improving operational efficiencies, and delivering on the 'Sugar for Nigeria' backward integration project.

Why this matters: Dangote Sugar Refinery's commitment to producing a significant portion of Nigeria's sugar demand from locally grown sugarcane is a major step towards reducing the country's reliance on imported sugar. The backward integration programme not only supports Nigeria's economic growth but also creates employment opportunities in the agricultural sector.

Aliko Dangote emphasized the importance of the backward integration strategy for the company's profitability and stability, stating that DSR is scaling up investments in its projects to meet the production targets. The company recorded a 9.5% increase in group turnover to N441.5 billion in 2023, with a profit before tax of N108.9 billion and profit after tax of N73.8 billion, despite the challenges faced in the operating environment.

Key Takeaways

  • Dangote Sugar Refinery plans to produce 700,000 MT of refined sugar from local sugarcane by 2028.
  • This will meet 50% of Nigeria's current refined sugar demand, part of a 10-year plan to produce 1.5 MT/year.
  • Challenges include inflation, lack of liquidity, and forex constraints, but the company remains committed to its goals.
  • Dangote Sugar has established a subsidiary in Ghana to expand its presence across Africa.
  • The backward integration program supports Nigeria's economic growth and creates agricultural jobs.