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Oriental News Nigeria
Home»Business»Dangote Invests $700Mn In Land Acquisition For Sugar Backward Integration Project 
Business

Dangote Invests $700Mn In Land Acquisition For Sugar Backward Integration Project 

By Orientalnews StaffNovember 7, 2024No Comments5 Mins Read
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Yemisi Izuora

The Dangote Group has made significant progress in its efforts to develop the Sugar Backward Integration Initiative.

The Executive Director Commercial Operations of the conglomerate, Fatima Aliko-Dangote, made the disclosure at Dangote’s day at the ongoing Lagos International Trade Fair in Lagos.

She said Dangote Sugar is a leading brand that has made a remarkable impact on the Nigerian sugar sector and the Company is committed to ensure that Nigeria ends the importation of raw sugar into the country by actively intensifying its execution of the Sugar Backward Integration.

In this regard, it has committed over $700 million in land acquisition, machinery, infrastructure, manpower, community relations, corporate social responsibility (CSR) and other impactful activities.

Similarly, to support the government in Food Security, the Group is also investing in the agricultural sector.

These agricultural products will soon be in the market, she assured.

Continuing she said the NASCON Allied Industries Plc (Dangote Salt), one of its subsidiaries that produces salt, seasoning and spices and the flagship product, Dangote table salt is a finely refined product for home/domestic use.

In line with the International Council for Control of Iodine Deficiency Disorders (ICCID), Dangote refined salt is iodized to promote good health by reducing the chances/risks of iodine deficiency. Dangote salt is refined from the finest quality sea-salts.

Ending she congratulated the leadership of LCCI for the successful hosting of the 38th Lagos International Trade Fair. The Fair provides avenues for exhibitors to meet and interact with their customers, adding “Our expectations therefore are that through this Trade Fair, we will be able to expand awareness for our innovative products, generate sales, get prospective buyers, improve the image of our brands and open new markets that will further translate to job creation and overall economic development.

“We are confident that this longstanding partnership with LCCI will not only be beneficial to both of us, but to the Nigerian, and indeed the African economy as whole. “

In his remarks President of Lagos Chamber of Commerce and Industry (LCCI), Mr. Gabriel Idahosa

said the theme of the fair, “Connecting Businesses, Creating Value,” resonates deeply with the drive for industrialization as championed by some large-heart conglomerates like the Dangote Group.

Idahosa, said,”In a nation facing complex economic challenges, the Dangote Group has remained a pillar of industrial strength and resilience, embodying the values of innovation, diversification, and a steadfast commitment to Nigeria’s economic growth. The Dangote Group’s journey is a story of strategic diversification and visionary leadership, capitalizing on Nigeria’s rich natural resources and creating millions of jobs, opportunities for SMEs, and an environment for foreign investments.

Speaking further he said “Through its vast network of subsidiaries, the Dangote Group has mastered the art of creating value chains within Nigeria, providing both direct and indirect employment to thousands. It has also helped reduce Nigeria’s reliance on imports by producing essential goods locally, from cement to foodstuffs and fertilizers. The Dangote Group’s commitment to domestic production has not only boosted Nigeria’s GDP but also fostered a culture of self-reliance and resilience, encouraging other Nigerian businesses to follow suit.

“Dangote Cement, a flagship subsidiary of the Group, is Nigeria’s leading cement producer and one of Africa’s largest. Operating with a production capacity of over 45.6 million metric tons per annum (MTPA) across Nigeria, it has reduced the country’s dependency on cement imports significantly. Despite challenges such as rising production costs and energy supply disruptions, Dangote Cement has maintained profitability by leveraging cost-effective production strategies, innovative distribution channels, and economies of scale. Recently, the company announced a commitment to renewable energy to mitigate rising energy costs, underscoring its adaptive approach to an ever-changing business environment.”

In addition he said, “Dangote Sugar Refinery (DSR) and Dangote Salt are critical to Nigeria’s agro-industrial landscape. DSR, the largest in sub-Saharan Africa, has pioneered backward integration through large-scale sugar plantations in Nasarawa State, contributing to local employment and reducing Nigeria’s sugar import dependency. Recent investments in cutting-edge refining technologies have boosted operational efficiency, allowing DSR to maintain high-quality production standards and competitive pricing despite fluctuations in the global sugar market. Similarly, Dangote Salt’s steady market share growth speaks to its strong supply chain and consistent quality control, positioning it as a staple in Nigerian households.

“The Dangote Refinery, a $19 billion project, is one of Africa’s most ambitious private sector investments. Set to produce 650,000 barrels per day (bpd), which is now a game changer, reducing Nigeria’s dependency on imported petroleum products, saving the country billions in foreign exchange annually. Additionally, the Dangote Fertilizer Plant, the largest in Africa, has already begun exporting fertilizer across the continent, with the recent production figures highlighting an annual capacity of 3 million metric tons. These projects are redefining Nigeria’s industrial landscape and soon positioning the country as a net exporter of refined oil and fertilizers.”

According to him, “Operating in Nigeria, the Dangote Group faces several challenges, including fluctuating foreign exchange rates, limited access to energy, inflationary pressures, and an evolving regulatory landscape. Nonetheless, its ability to adapt and thrive in such a complex environment is a testament to its operational resilience and strategic foresight.

“The Group’s commitment to backward integration, where inputs are sourced locally whenever possible, has not only reduced its exposure to foreign exchange volatility but also spurred local industry development. For instance, Dangote Cement sources a large portion of its raw materials locally, which helps mitigate foreign currency risks while empowering local communities through job creation and skill development. Similarly, the Group’s investment in self-sustaining energy sources, particularly in the fertilizer plant, is a proactive step toward reducing dependency on an unreliable national power grid.

“The Dangote Group stands as an enduring example of how businesses can transform economies, drive development, and inspire positive social change. Its story is not only a Nigerian success but also an African one—demonstrating that local industries, with the right leadership, vision, and strategies, can compete globally while nurturing their domestic markets.”

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Orientalnews Staff

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