By Lucy Ogalue
The National Sugar Development Council (NSDC) says it has invested about N2.2 billion in Oyo Sugar and Derivatives Industries Ltd. (OSDL), Iseyin.
The NSDC said this in a statement on Thursday, adding that its intervention covered the core sugar mill, sugarcane development and operational support.
It said that the 300-tonnes-per-day (TCD) Greenfield sugar mill has reached the commissioning and test-running stage under the Nigeria Sugar Master Plan (NSMP).
The council said it initially provided about N1.64 billion for procurement of the 300 TCD sugar mill before increasing its financial commitment.
According to the NSDC, its total investment in the project has now risen to about N2.2 billion.
It said the Oyo state government also contributed about N850 million in equity funding towards completion of outstanding works at the factory.
The council said the project began as a cooperative farming venture involving communities in Iseyin before evolving into an integrated sugar manufacturing facility.
The NSDC said the factory was expected to support Federal Government efforts to increase domestic sugar production and reduce dependence on imported sugar.
It said that the project represented a significant milestone in implementing the NSMP and its Backward Integration Programme.
The Executive Secretary and Chief Executive Officer of NSDC, Kamar Bakrin, attributed the milestone to sustained collaboration among stakeholders.
“That this factory now stands ready for commissioning is the result of sustained commitment by the Council, by the Oyo state government and by the promoters themselves,” Bakrin said.
He said that the council would remain involved as the factory transitioned into full-scale commercial production.
Bakrin said the project would demonstrate the potential of building Nigeria’s sugar industry around locally grown sugarcane.
The News Agency of Nigeria (NAN) reports that the programme seeks to expand local sugarcane cultivation, increase processing capacity and promote an integrated domestic sugar industry.
With commissioning and test-running underway, OSDL is expected to transition into commercial production and strengthen sugarcane-based industrial activity in Oyo state. (NAN)
