The National Sugar Development Council (NSDC) has expressed its commendation to Oyo Sugar and Derivatives Industries Limited (OSDL) for the successful commissioning and test-running of its 300-tonnes-per-day sugar factory in Iseyin, Oyo state. This milestone marks a significant achievement in Nigeria's sugar industry, demonstrating the potential for local production. The factory's development is a result of over a decade of support from the NSDC under the Nigeria Sugar Master Plan.
According to the Executive Secretary and Chief Executive Officer of the NSDC, Kamar Bakrin, the Iseyin-based factory is one of the few greenfield sugar mills developed under the NSMP's Backward Integration Programme. The project has transitioned from a cooperative farming initiative into a fully operational industrial facility. Bakrin commended the promoters of OSDL and local farming communities for their commitment to the project, enabling the factory to reach operational readiness.
The NSDC provided significant financial support for the factory's development, funding the procurement of the 300 TCD sugar mill at approximately ₦1.64 billion. The council will also fund sugarcane development and operational support, bringing its total financial commitment to around ₦2.2 billion. This investment demonstrates the council's dedication to Nigeria's sugar industry growth.
The Oyo State Government also contributed to the project's completion, providing an estimated ₦850 million in equity funding for outstanding works at the factory. The commissioning is a result of collaboration among the NSDC, the Oyo State Government, project promoters, and local farming communities. This joint effort has enabled the factory to reach operational readiness.
The development of the Iseyin factory showcases the potential of Nigeria's sugar industry to expand domestic production using locally cultivated sugarcane. The project strengthens the participation of farming communities in the country's sugar value chain. By supporting local production, the NSDC aims to reduce reliance on imported sugar and promote self-sufficiency in the industry.
The NSDC will continue to support OSDL beyond the commissioning stage as it transitions into full-scale commercial production. The council expects this project to serve as proof that Nigeria's sugar sector can be built on locally grown cane. This long-term engagement will ensure the factory's success and contribute to the growth of Nigeria's sugar industry.
The successful commissioning of the Oyo sugar factory marks a significant milestone in Nigeria's efforts to develop its sugar industry. With continued support from the NSDC and other stakeholders, the factory is poised to make a substantial contribution to the country's sugar production. The project's success will be closely watched as a model for future developments in the sector.
Key points
- The National Sugar Development Council provided approximately ₦2.2 billion in financial support for the development of the Oyo sugar factory.
- The Oyo State Government contributed an estimated ₦850 million in equity funding towards the completion of the factory.
- The factory has the capacity to produce 300 tonnes of sugar per day using locally cultivated sugarcane.
