Nigeria Resuming Sugar Production

WASHINGTON - May 9/06 - SNS -- Nigeria is in a position to produce sugar this year, after relying on imports to cover all domestic needs the past four years, says the U.S. agricultural attache for the country.

Domestic production sank to zero when the government started privatizing "all its four sugar estates after several years of mismanagement," the agricultural attache said.

"The new investors have taken over the management of these estates and have embarked on the rehabilitation and expansion of the cane fields and the mills. According to the Nigerian government, the privatization of these estates is a key element of revamping the sugar industry and increasing local production.

In what appears to be a major success story for Nigeria's privatization exercise, Dangote Group, the new owner of Savannah Sugar Company has completely rehabilitated the cane fields and the mill. The facility has been completely revamped and milling operation is expected to resume this month. The other sugar estates in Bacita and Sunti have all been privatized but are yet to resume operation.

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