Oyo Sugar Factory Set for Inauguration After Over N2.2bn NSDC Support

Sunday Ehigiator 

The Oyo Sugar and Derivatives Industries Limited (OSDL) factory in Iseyin, Oyo State, has reached the commissioning and test-running stage following more than N2.2 billion in financial support from the National Sugar Development Council (NSDC).

The 300-tonnes-per-day (TCD) greenfield sugar mill was developed under the Nigeria Sugar Master Plan (NSMP) and is one of the few new-build sugar factories to emerge from the plant’s Backward Integration Programme.

The NSDC, in a statement, congratulated the promoters and farming communities in Iseyin on the milestone, describing the development as the culmination of more than a decade of financial, technical and institutional support by the Council.

According to the Council, it funded the procurement of the factory’s core 300 TCD sugar mill at approximately N1.64 billion.

As the project progressed, the NSDC provided additional funding for sugarcane development and operational support, bringing its total financial commitment to approximately N2.2 billion.

The Oyo State Government also contributed an estimated N850 million in equity funding towards the completion of outstanding works.

The Council commended the promoters and farming communities for transforming the initiative from a cooperative farming venture into an operational sugar factory.

Executive Secretary/Chief Executive Officer of the NSDC, Kamar Bakrin, said the project’s progress was the result of sustained commitment by the key stakeholders.

“That this factory now stands ready for commissioning is the result of sustained commitment; by the Council, by the Oyo State Government and by the promoters themselves,” Bakrin said.

He said the NSDC would continue to support the project as it transitions to full-scale commercial production.

“Our work does not end here. The NSDC will remain engaged as OSDL moves into full-scale commercial production, and we expect this project to serve as proof that Nigeria’s sugar sector can be built on locally grown cane,” he said.

The Council said the development represented a significant step in the implementation of the Nigeria Sugar Master Plan and the promotion of locally produced sugarcane as the foundation for Nigeria’s sugar industry.