The Dangote Sugar Refinery (DSR) Plc has announced the
closure of its company in Niger state over a land acquisition
dispute. The company announced the development in its
2020 consolidated and separate financial statements.
It said the land was purchased for its backward integration
project (BIP) which is ongoing in some other states
including Adamawa, Nasarawa, and Taraba.
DSR said the BIP includes a 10-year sugar development
plan to produce 1.5 million metric tonnes per annum of
sugar from locally grown sugarcane.
It said the dispute in Niger led to a stretched situation that
had started accumulating negative returns.
“The Company began its Backward Integration Project (BIP)
with a 10-year sugar development plan, to produce 1.5
million MT per annum of sugar from locally grown
sugarcane. The Project commenced with the acquisition of
large expanse of land in strategic locations such as Niger
State, Taraba State, Adamawa State, and Nasarawa State,”
the report read.
“To this end, four (4) BIP sugar companies; Dangote Taraba
Sugar Limited, Dangote Adamawa Sugar Limited, Nasarawa
Sugar Company Limited, and Dangote Niger Sugar Limited
were incorporated. Prior to the merger of DSR and SSCL,
the Company had commenced rehabilitation and expansion
of SSCL Sugar Factory at Numan towards increasing
production capacity by 6,000 tons of cane per day (TCD).
“Sugarcane planting has also commenced in two other BIP
locations. Regrettably, due to community dispute over the
land acquired in Niger State, projected activities have not
commenced in Niger State. This had been a stretched
situation that had started accumulating negative returns.
“In view of this, the Board of Directors took a decisive
decision to wind-up the BIP Company in Niger State. In
December 2020, the winding-up proceedings for Dangote
Niger Sugar Limited were completed.”