Lucy Ogalue
The National Sugar Development Council (NSDC) says Nigeria requires 7.1 billion {dollars} over 10 years to realize self-sufficiency in sugar manufacturing.
The Executive Secretary of the council, Mr Kamar Bakrin, disclosed this at a information convention organised for the Commerce and Industry Correspondents Association of Nigeria (CICAN) in Abuja.
Bakrin mentioned the funding would assist current sugar estates, 10 proposed new initiatives and infrastructure required to broaden home manufacturing.
“This entire programme we are talking about is about 7.1 billion dollars for Nigeria to attain self-sufficiency over a 10-year period,” he added.
“About 70 per cent of the funding, estimated at five billion dollars, is expected from long-term debt facilities and development capital,” he mentioned.
According to him, three billion {dollars} will come from export credit score businesses, whereas 1.75 billion {dollars} was anticipated from different improvement finance establishments.
He mentioned one other 250 million {dollars} was projected from native improvement finance sources, with the remaining 2.1 billion {dollars} to be supplied by venture promoters and operators.
Bakrin mentioned the financing construction was mandatory as a result of industrial lending phrases had been unsuitable for the capital-intensive sugar business.
“Commercial loans cannot finance this sugar sector. That one, I think we know.
“Also, loans attracting interest rates of between 15 and 28 per cent over five years cannot support the industry’s financing requirements,” he mentioned.
Bakrin disclosed that the council had signed a one-billion-dollar settlement with Chinese group Sinomach for engineering, procurement, development and financing.
“About one billion dollars has been signed with Sinomach and that will go directly to the estates as soon as we get to financial close,” he mentioned.
He mentioned the council had additionally developed related engineering, procurement and development financing frameworks with Chinese and Indian entities.
Bakrin mentioned a 10-billion-naira Sugar Project Acceleration Fund had been developed with the Bank of Industry to finance feasibility and bankability research.
He added that the council was working with Afro-Asian Bank and different improvement businesses to facilitate financing for the programme.
“While I can say that it is not basically NSDC’s job to go and look for the money, we have taken it upon ourselves to aggressively facilitate the sourcing of this funding,” he mentioned.
Bakrin mentioned the council can be assessed on measurable outcomes, together with cultivated hectares, sugar manufacturing and financing secured for the initiatives.(NAN)
Edited by Francis Onyeukwu
