The Dangote Sugar Refinery (DSR) Plc has announced the closure of its company in Niger state over a land acquisition dispute.
The company announced the development in its 2020 consolidated and separate financial statements.
It said the land was purchased for its backward integration project (BIP) which is ongoing in some other states including Adamawa, Nasarawa, and Taraba.
DSR said the BIP includes a 10-year sugar development plan to produce 1.5 million metric tonnes per annum of sugar from locally grown sugarcane.
It said the dispute in Niger led to a stretched situation that had started accumulating negative returns.
“The Company began its Backward Integration Project (BIP) with a 10-year sugar development plan, to produce 1.5 million MT per annum of sugar from locally grown sugarcane. The Project commenced with the acquisition of large expanse of land in strategic locations such as Niger State, Taraba State, Adamawa State, and Nasarawa State,” the report read.
“To this end, four (4) BIP sugar companies; Dangote Taraba Sugar Limited, Dangote Adamawa Sugar Limited, Nasarawa Sugar Company Limited, and Dangote Niger Sugar Limited were incorporated. Prior to the merger of DSR and SSCL, the Company had commenced rehabilitation and expansion of SSCL Sugar Factory at Numan towards increasing production capacity by 6,000 tons of cane per day (TCD).
“Sugarcane planting has also commenced in two other BIP locations. Regrettably, due to community dispute over the land acquired in Niger State, projected activities have not commenced in Niger State. This had been a stretched situation that had started accumulating negative returns.
“In view of this, the Board of Directors took a decisive decision to wind-up the BIP Company in Niger State. In December 2020, the winding-up proceedings for Dangote Niger Sugar Limited were completed.”