Nigeria's local sugar suppliers cannot meet the country's demand for the commodity. Investors now have the opportunity to invest in a sugar refining facility in Kwara State, situated in central Nigeria.
Investment Opportunity
Nigeria's sugar industry is under-developed and despite some investment in recent years, the country is still importing large quantities of sugar. Annual demand for sugar is estimated at around 3.5 million tonnes per annum while local production only have a capacity of 2.4 million tonnes.
Under the common external tariff (CET) there is currently a 50% tariff on the importation of white sugar, and a 5% levy on imported raw sugar. This is to stimulate the refining of raw sugar in Nigeria.
Sugar cane is currently grown in the Edu and Patigi Local Government Areas of Kwara State. Investors can choose to either plant their own sugar cane or buy from the numerous small scale farmers.
Reasons to Invest in Kwara State
Incentives: The Kwara State Government is willing to extend a number of incentives to serious investors. These include the provision of land and infrastructure, tax holidays and assistance with obtaining financing.
Labour: Kwara State is home to the well-respected University of Ilorin and construction of the new Kwara State University was recently completed. Kwara State therefore has a large number of graduates who can be employed by companies investing in the state.
Cargo terminal: A new cargo terminal at the Ilorin International Airport will soon be completed and will allow for goods to be transported via air, both locally and internationally.
Power supply: Due to the recent completion of the Ganmo sub-station, the state capital, Ilorin, currently enjoys very close to 24 hours a day of uninterrupted power supply. Many business owners are delighted by the fact that they have to make very little use of generators.
Political will: The government of Kwara State is devoted to creating an enabling environment for business and investment. The state is also committed to continuity of policies which will ensure that an investor friendly environment remains even after the end of the current administration's tenure.
Investment insurance: Nigeria is a member of MIGA (Multilateral Investment Guarantee Agency) and the ICSD (International Centre for Settlement of Investment Disputes).
Contact Details Investors interested in this project should contact Fela Ibidapo, Special Assistant to the Executive Governor, Kwara State (Investments) at felaibidapo@kwarastate.gov.ng
