Dangote Sugar Refinery Plc has urged the government to faithfully follow through with the Backward Integration Policy (BIP) in the sugar industry as the nation stands to rake in foreign exchange up to $700millon yearly from Sugar production self-sufficiency.
Chairman of Dangote Sugar Refinery Aliko Dangote while addressing shareholders, at the company’s 15th yearly general meeting held in Lagos recently said, allowing for distortions in the sugar masterplan framework will adversely affect the target of the nation attaining self-sufficiency as projected.
He described the backward integration policy as commendable, which will not only reduce imports of raw sugar but save the nations enormous foreign exchange used for importation.
Dangote expressed delight that the BIP in the sugar industry is going on well, noting that if the national sugar master plan is followed strictly and the players follow the rules, Nigeria will save between $600 million to $700 million yearly as foreign exchange.
He stated that the backward integration policy of the company is recording appreciable progress even as he expressed the company’s commitment to the policy.
Dangote said despite the disruptions in the economy occasioned by the covid-19 pandemic, the company recorded an increase in production volume which rose by 13.7 percent to 743,858 tonnes in the financial year ended December 31, 2020, compared to 654,071 tonnes in 2019.
He stated that the company posted a group turnover of N214.3 billion, 33 percent increase over the N161.1 billion in 2019, while in the same period the Sugar Group also posted 6.9 percent rise in sales volume from 684,487 tonnes in 2019 to 731,701 tonnes in 2020.
Shareholders at the meeting, approved N18.22 billion dividend, translating to N1.50 kobo per ordinary share of 50k each.
Dangote said the company has revised its sugar production target to 550,000 metric tonnes achievable by 2024 in line with the revised plan on the BIP by the federal government.
In his remarks, the Group Managing Director/Chief Executive Officer, Ravindra Singhvi, speaking on the results said the sugar group continued the growth path with commitments to improve performance and generate value for all stakeholders.
He explained that this was reflected in the sales volume delivery of 731,701 tonnes, and production of 743,858 tonnes being 6.9 per cent and 13.7 per cent increase in volumes over the comparative year 2019.