liko Dangote, chairman of the Dangote Sugar Refinery, says Nigeria can make $700 million in foreign exchange annually by implementing the Backward Integration Policy (BIP) from sugar production.
He stated this at the company’s 15th Annual General Meeting on Thursday in Lagos.
Mr Dangote said allowing for distortions in the sugar masterplan framework would adversely affect the nation’s target attaining self-sufficiency as projected.
He said the policy would reduce imports of raw sugar and save the nation’s foreign exchange used for importation.
Mr Dangote, however, noted that if Nigeria fully implemented the Sugar Master Plan and the players adhered strictly to the rules, the country would save between $600 million and $700 million annually as foreign exchange.
“The backward integration policy of Dangote Sugar Refinery is recording appreciable progress, and we will remain committed to the policy,” he said.
Addressing shareholders, Mr Dangote said, despite the disruptions in the economy occasioned by the COVID-19 pandemic, the company announced an increase in production volume, which rose by 13.7 per cent to 743,858 tonnes in the review period from 654,071 tonnes in 2019.
Mr Dangote disclosed that the company posted a group turnover of N214.3 billion against N161.1 billion in 2019, adding that the sugar group posted a 6.9 per cent increase in sales volume from 684,487 tonnes in 2019 to 731,701 tonnes in 2020.
“Our growth continued to benefit from the sustained efforts to drive customer base expansion and several trade initiatives and investments.
“Gross profit increased by 40.4 per cent to N53.75 billion, compared to N38.29 billion in 2019 while group profit after tax for the year increased by 33.2 per cent to N26.70 billion against N22.36 billion in 2019, reflecting management’s unrelenting goal to deliver consistent shareholder value,” said Mr Dangote.