BY VICTORIA ONU, ABUJA
DANGOTE Group has petitioned the Federal Government through the Ministry of Industry, Trade and Investment, demanding that BUA Sugar Refinery be shut down.
Dangote Group, in a letter jointly signed by Aliko Dangote and the Chairman, Flour Mills of Nigeria Plc, John Coumantaros, sighted by THE POINT, said that the commissioning of the BUA Port Harcourt refinery was an act intended to undermine the National Sugar Master Plan of the Federal Government.
Recall that the Federal Executive Council had, at its 37th meeting held on September 19, 2012, approved the NSMP for implementation and adoption as government’s strategy roadmap for the development of the sugar sub-sector, under former Minister of Industry, Trade and Investment, Segun Aganga.
The plan contains fiscal and investment specific incentives designed to stimulate and attract new investors to the industry in order to increase local sugar production and reduce the nation’s dependence on imports.
The plan aims to guarantee huge returns on investments for all players, attain self-sufficiency, create jobs, generate electricity and derive other benefits of the sugarcane value chain.
The group noted that, according to the mid-term review conducted by the National Sugar Development Council, BUA had erred by failing to invest substantively in local production of sugar.
It called for investigations to determine the quality of raw sugar imported by the refinery in Port-Harcourt and the appropriate penalty in terms of duty (60 per cent) and levy (10 per cent) to be imposed on the company.
It said, “The sugar industry in Nigeria has been governed for a while now by the National Sugar Master Plan, which is a well designed policy to encourage backward integration in the sugar industry with the ultimate objective of attaining self-sufficiency in sugar production locally.
“With this in mind, we wish to humbly bring to your attention an important issue which we believe threatens the attainment of the National Sugar Master Plan and the sustainability of Nigeria’s local sugar industry of which our two companies are the largest investors.
“Publicly available information suggests that BUA International, one of the players in the sugar industry, has commissioned a sugar refinery plant in Port Harcourt, River State.
“Recall that we (indicated) this development in 2019, and we were re-assured that in line with the government’s SIP, no new refinery will be allowed to operate in Nigeria.”
It added, “We seek a level playing field that provides for fair competition in the local sugar market in order that we stay on course to achieve the gain of sugar master plan.
“We humbly request that the Honourable Minister engage with the Comptroller-General of Customs and the CBN Governor to consider and implement the following; that the Nigeria Customs Service be mandated to comply strictly with the authorized quota allocation in clearing cargoes and administering levy and duty.
“That the Central Bank of Nigeria be required to monitor the registration of form Ms in line with the quota allocation.”
The Dangote Group also stated that the BUA group only sought to promote imports while claiming to be investing in sugar plantation, adding that Nigeria already had enough refining capacity to satisfy the demand of Nigerians.
“Before this investment in additional refining capacity, Nigeria already has enough refining capacity to satisfy demand today and well into the future.
“So the business logic behind this investment is clearly defective, BUA intends only on importing and refining raw sugar while claiming to be investing in developing sugar plantations in order to qualify for quota to import raw sugars,” it added.
BUA in its own defence sent to the Minister of Trade stated that the law allowed it to sell sugar locally.
While attaching the enabling permits and approval, the Company said, because of the connivance of the two major sugar manufacturers to hike the price of Sugar during the Ramadan period, the law allowed it to sell locally.
BUA also warned that Dangote Group and the other major player had not been involved in any backward integration project.
It said, rather, they depended on 80 per cent raw sugar allocation which was detrimental to the Nigerian economy in long-term analysis.
