Flour Mills invests N141b in sugar business

Nigeria’s largest food-focused agro-allied conglomerate, Flour Mills of Nigeria Plc has invested more than N141 billion in the expansion of its sugar business.

In a regulatory filing at the stock market, Flour Mills of Nigeria  (FMN) stated that it has further expanded its sugar backward integration programme (BIP) with the acquisition of 20,450 hectares of land in Nasarawa State.

The land is situated in Umaisha Development Area of Toto Local Government Area of Nasarawa State on the north bank of the Benue river, about 70 kilometres upstream from Lokoja.

According, to the company, the investment demonstrated its commitment to the backward integration programme of the Nigeria Sugar Master Plan, and the overall growth strategy of the Sugar industry in the country.

The signing ceremony held in Abuja, to commemorate the handover of the land by  Governor Abdullahi Sule, to FMN.

Group Managing Director, FMN, Mr. Omoboyede Olusanya, in the company of other senior executives of FMN, accepted the handover of the site for FMN.

“It is expected that land preparation, including, surveys and the initial designs will start immediately in anticipation of the commencement of operations during the course of this year.

“The plan is to develop up to 15,000 hectares under cane and to construct a state-of-the-art sugar mill in line with our BIP commitments and Nigeria’s drive for self-sufficiency in sugar production.

“Similar to our investments at Sunti, Niger State, the development plan of the Nasarawa BIP will significantly benefit neighbouring communities who will be impacted by numerous community improvement projects that have already been earmarked to begin soon, including access roads, electrification projects, primary healthcare and educational facilities and expanded youth job opportunities – including the extsension of our out-grower scheme that will empower farmers, and ultimately improve lives. The total projected cost to achieve this bold new plan is at least $300 million,” FMN stated.