SOFT COPY SUBSCRIPTION
Annual subscription x 12 issues
Never miss another issue of Investing in Nigeria magazine. Get an Annual Subscription and get Investing in Nigeria magazine delivered direct to your E- Mail Address every month!
You would also have 12 months access to over 50 market intelligence reports on our website.
N5, 000 for 12 issues
Euro 25 for 12 issues
$32 for 12 issues
Subscribe Now!
For more on our subscription and membership package, please do visit http://www.foramfera.com/index.php/membership-zone
SUGAR CANE PRODUCTION AND PROCESSING OPPORTUNITIES IN NIGERIA
Nigerian agriculture is characterized by considerable regional and crop diversity. Analysis of this sector, particularly the food sub-sector, is fraught with serious data problems. However, the available statistics provide a broad overview of development in agriculture upon which we can make some broad generalizations about its role in economic development and structural change in Nigeria.
In the 1960s, the agricultural sector was the most important in terms of contributions to domestic production, employment and foreign exchange earnings. The situation remained almost the same four decades later with the exception that it is no longer the principal foreign exchange earner, a role now being played by oil.
The decline in agricultural production in Nigeria has lead to massive importation of food products in Nigeria. It is on record that Nigeria spends about $2 billion annually in importing food items. Recent reports show that each year, Nigeria spends $132 million on importation of milk; $400 million on wheat; $200 million on poultry, especially frozen chicken; and $756 million on rice. Nigeria also imports about 95 million metric tons of sugar annually.
In spite of its large areas of cultivatable land suitable for the growing of sugar cane and some recent investments in the sub-sector, Nigeria still imports 90% of its sugar. Sugar, a one of the product gotten from the processing of sugar cane, is one such consumer goods that is consumed by virtually everyone because it has little or no substitute. Although there are variants of sweeteners– honey, saccharine, and others, these are seldom used by the industrial consumers of sugar. Another product can be produced from sugar cane, ethanol, is a very useful biodiesel.
Sugar is consumed by households and particularly the industries where it serves as raw materials for companies in the foods and beverages industry i.e. confectioneries, soft drink and brewery and pharmaceuticals alike account for 35 percent of the total sugar consumption in Nigeria. Trends in industrial activities suggest that the demand for sugar will continue to rise. The demand for sugar today is put at between 2.5 and 3 million tonnes.
Some of the states where sugar cane can be produced in Nigeria include Sokoto, Taraba, Niger, Kogi, Kwara and most northern states.
With overall sugar consumption in the region of 1.5 million tons, Nigeria is the largest consumer of sugar in Africa apart from South Africa, and the industry is still dependent on raw sugar imports. 90% of Nigeria’s sugar is, however, refined in the country, opening the door to increased exports of refined sugar.
The Nigerian government encourages local value addition by maintaining a duty differential of 50% between imports of refined sugar and raw sugar and granting five year tax holidays to refineries. (The tariff differential between imports of refined sugar and raw sugar from the Economic Community of West African States (ECOWAS) and other countries is 15%). Other incentives include
•Companies in the agro-allied business do not have their capital allowance restricted. It is granted in full i.e. 100%.
•The payments of minimum tax by companies that make small or no profits at all do not apply to agro-allied businesses.
•Agro-allied plants and equipment enjoy enhanced capital allowances of up to 50%.
•Processing of agricultural produce is a pioneer industry, consequently there is 100% tax-free period for 5 years.
•All agricultural and agro-industrial machines and equipment enjoy 1% duty.
•The Agricultural Credit Guarantee Scheme Fund (ACGSF), administered by the Central Bank of Nigeria, guarantees up to 75% for all loans granted by commercial banks for agricultural production and processing.
•The Interest Drawback Program Fund provides a 60% repayment of interest paid by those who borrow from banks under the ACGS, for the purpose of cassava production and processing. To qualify for these repayments, borrowers need to repay their loans on schedule.
To continue reading this article and other investment opportunities in Nigeria, please do click on the link below
SUGAR CANE PRODUCTION AND PROCESSING OPPORTUNITIES IN NIGERIA
Should you require a business plan on the subject matter, please do contact us through any of the means below.
Office Phone Number: 01- 295 24 13 {Monday – Saturday; 8 am – 5 pm}
Mobile Number: +234 {0} 8033782777 {Monday – Saturday; 8 am – 6 pm}
Office Address:
61-65 Egbe- Isolo Road,
Iyana Ejigbo Shopping Arcade,
Block C, Suit 39,
Iyana Ejigbo Bus Stop,
Ejigbo, Lagos.
Like and Follow us on
Twitter: https://twitter.com/fmarketresearch
HUMAN DEVELOPMENT PROGRAMMES AND TRAINING OPPORTUNITY IN NIGERIA
Our human development training programmes are designed to assist our client set-up their respective business on a sound footing.
The
training cuts across different segment of the economy to include
Agriculture, Export and Import, Food and Beverage, Manufacturing, Mining
and Quarry, Oil and Gas, Retail Industry, Telecommunication, Tourism
and Transportation and are facilitated by seasoned professionals in
their respective fields.
Please do visit the link below to access available training programmes
Foraminifera
Market Research is a dynamic market intelligence company providing
comprehensive market research solutions and strategic intelligence
services to start-ups and existing businesses in Nigeria.
We
prepare business plan, feasibility study and market report for the
small and medium scale industries and develop the entrepreneurial
capacity of our client with the aim of providing the much needed
business data in Nigeria.
In
keeping with our vision of providing services that adds value to our
clients business and resources to develop their business into a strong
and visible global brand, we would like to introduce to you to our
sister websites
www.nigeriaoilandgasportal.com {The one stop for the oil and gas industry in Nigeria}
www.marketreportportal.com {Marketing and Sales of Market Intelligence Report}
www.nigeriabusinessplace.com {Online Business Forum}
