In recent times of Nigerian history, the rate of importation of sugar has reduced drastically owing to the revolution taking place in the sector as Nigeria stands as a major exporter of sugar. It is therefore an incontrovertible fact that the sugar master plan championed by Dr. Jonathan’s led government has made tremendous impact on our economy even as it has created more jobs for the Nigerian populace.
The Nigerian Sugar Master Plan is a road map designed to make the Nigerian sugar industry transform into a world class multi-product sugarcane industry. In line with the Federal government’s Transformation Agenda to make Nigeria one of the top 20 economies in the world by the year 2020, the NSMP aims at reinvigorating the sugar industry to contribute to the overall goal of the Agenda.
The NSMP provides a framework for setting goals, defining key actions, and generating and allocating resources to fund programs in the industry. It is a unifying instrument at the strategic level for industry stakeholders, who otherwise are autonomous operators. It lays the ground for enhanced performance of the sugar industry premised on a robust import substitution strategy and attraction of investment through a liberal regime of incentives and fiscal policies.
It is instructive to note that Mr. Olusegun Aganga, Minister of Industry, Trade and Investment said that Nigeria’s sugar industry created over 80,000 jobs since in 2011. When National Sugar Plan was unveiled.
The sugar industry attracted $3.2bn in the same period, a huge increase from the $100m invested in 2011. The number of jobs in the sugar industry then was 3,850. But it was over 80,000 by 2013.
“Investment in sugarcane was $100m then, but it was about $3.2bn by November 2014.
The Federal Government approved the Nigeria Sugar Master Plan in September 2012 as a government strategic road map for the development of the sugar sub-sector. On January 1, 2013, the policy took effect and led to an outright ban on the importation of refined sugar in retail packs.
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. It was designed to have an investment of $3.1bn (N496bn) that would be needed from the private sector to effectively implement the sugar policy.
According to National Bureau of Statistics data, the total amount spent by the country on sugar import in 2011 was $240.6bn and it dropped significantly to $49bn in the first half of 2014.
President Goodluck Jonathan implemented far-reaching industrial policies which had helped to diversify the nation’s revenue base, attracted fresh foreign direct investments, created employment and increased the capacity utilisation of key manufacturing sectors of the economy.
The President, Dr. Goodluck Ebele Jonathan GCFR approved the Year 2013 Fiscal Policy Measures
Here are the highlights of the 2013 Fiscal Policy Measures on sugar.
i. Machinery and spare parts imported for the establishment of local sugar manufacturing industries shall attract zero percent (0%) import duty.
ii. Sugar cane to sugar value chain investors shall enjoy a 5 year –tax holiday.
iii. Raw sugar (H.S. Codes 1701.1100.00- 1701.1200.00) shall attract an import duty rate of 10% plus a levy of 50% while refined sugar (H.S.Codes 1701.9110.00-1701.9990.00) shall attract an import duty rate of 20% plus a levy of 60%.
Conclusively, It is of practical relevance to note that the Nigerian Sugar Master Plan (NSMP) came at a time when the industry needed to rethink its direction to meet the national sugar demand through local production. This administration strategically put in place measures for the industry to find ways of re-positioning itself to become a world class multiproduct sugarcane industry. This would require that the industry goes beyond sugar, think more about sugarcane as a whole, and exploit market opportunities presented by multiple sugarcane products. The new thinking therefore, requires that the industry mobilizes and invest resources in new start-ups and backward integration programs. All these feat to a considerable extent has been attained.