Dangote Group set to invest over US$700M to end raw sugar imports in Nigeria  | Food Business Africa

NIGERIA – Dangote Group President Aliko Dangote has reaffirmed the company’s commitment to ending raw sugar importation in Nigeria with an investment exceeding US$700 million in local sugar production. 

Speaking during the ‘Dangote Special Day’ at the 14th Gateway International Trade Fair in Abeokuta, Ogun State, Dangote emphasized the group’s Sugar Backward Integration Plan (BIP) as a strategy to boost domestic production and reduce import dependency. 

“We are actively executing the Sugar Backward Integration strategy and have committed over US$700 million to land acquisition, machinery, infrastructure, manpower, community relations, and corporate social responsibility initiatives to ensure Nigeria ends raw sugar importation,” Dangote stated. 

The announcement aligns with the National Sugar Development Council’s (NSDC) push to attract both local and international investors to Nigeria’s sugar industry.  

Kamar Bakrin, Executive Secretary and CEO of NSDC, highlighted that the country’s annual sugar consumption ranges between 1.4 to 1.6 million metric tonnes, with about 96 percent of demand met through imports, primarily from Brazil. 

Dangote also disclosed that the conglomerate has commenced fertiliser exports to various countries, including France, the United States, Mexico, Uruguay, Argentina, and several African nations such as Benin Republic, Zambia, and Cameroon. 

Additionally, he confirmed that the Dangote Refinery has begun exporting refined petroleum products, further reinforcing the company’s contributions to Nigeria’s industrial expansion.  

Meanwhile, Dangote’s cement operations across Nigeria and over 10 African countries continue to facilitate export financing. 

“As a conglomerate driving Nigeria’s economic diversification, we will continue to explore opportunities in the manufacturing sector to replace imports, create jobs, and support economic growth,” Dangote said. 

The investment drive follows calls from industry experts for the government to implement stronger policies to boost domestic sugar production and reduce dependence on imports. 

Nigeria’s sugar market is expected to expand significantly, fueled by growing demand, rising investments, and supportive government policies. Analysts project the industry could exceed US$2.5 billion by 2030, with an annual growth rate of 5.37percent. 

A report from the United States Department of Agriculture (USDA) Foreign Agricultural Service (FAS) forecasts a 6 percent rise in refined sugar exports from West Africa and other Sub-Saharan African nations in the 2024/25 marketing year, driven by increasing demand. 

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