The Oyo Sugar and Derivatives Industries Limited (OSDL) factory in Iseyin, Oyo State, is poised for commissioning and test-running after receiving over ₦2.2 billion in financial support from the National Sugar Development Council (NSDC). This development marks a significant milestone in the Nigeria Sugar Master Plan's (NSMP) Backward Integration Programme. The factory, with a capacity of 300 tonnes per day, is one of the few new-build sugar factories to emerge from the plan.
The NSDC provided approximately ₦1.64 billion for the procurement of the factory's core 300 TCD sugar mill and additional funding for sugarcane development and operational support. The Oyo State Government also contributed an estimated ₦850 million in equity funding towards the completion of outstanding works. The Council commended the promoters and farming communities for transforming the initiative from a cooperative farming venture into an operational sugar factory.
The development represents a significant step in implementing the Nigeria Sugar Master Plan and promoting locally produced sugarcane as the foundation for Nigeria's sugar industry. Executive Secretary/Chief Executive Officer of the NSDC, Kamar Bakrin, attributed the project's progress to sustained commitment by key stakeholders, including the Council, the Oyo State Government, and the promoters.
Bakrin emphasized that the NSDC would continue to support the project as it transitions to full-scale commercial production. He expressed expectations that this project would serve as proof that Nigeria's sugar sector can be built on locally grown cane. The Council's support is seen as a crucial factor in the project's success.
The OSDL factory is a greenfield sugar mill developed under the NSMP, which aims to boost Nigeria's sugar production. The project's progress has been hailed as a significant achievement, with the NSDC's financial support playing a vital role. The factory's commissioning is expected to create new opportunities for the local economy.
The promoters and farming communities in Iseyin have been commended for their efforts in transforming the initiative into an operational sugar factory. The project's success is seen as a testament to the potential for collaboration and commitment among stakeholders. The NSDC's support has been instrumental in bringing the project to this stage.
As the OSDL factory prepares for commissioning, it is expected to contribute significantly to Nigeria's sugar production. The project's success will be closely watched, with expectations that it will serve as a model for future developments in the sector. The NSDC's continued support will be crucial in ensuring the project's long-term success.
Key points
- The Oyo Sugar and Derivatives Industries Limited factory received ₦2.2 billion in funding from the National Sugar Development Council.
- The factory has a capacity of 300 tonnes per day and is one of the few new-build sugar factories to emerge from the Nigeria Sugar Master Plan's Backward Integration Programme.
- The NSDC will continue to support the project as it transitions to full-scale commercial production.
