Nigeria considers divesting equity stake in Savé Sugar Company, says minister

NIGERIA – Nigeria’s Minister of State for Industry, Trade, and Investment, John Enoh, has announced that the government may consider selling its equity stake in the struggling Savé Sugar Company if ongoing efforts to secure a viable investor fail. 

The announcement came after Enoh’s visit to the sugar production facility in Cotonou, Benin Republic, marking the first visit by a Nigerian minister since the company’s establishment in 1975.  

The minister highlighted the importance of the facility, which once served as a critical economic driver for both Nigeria and Benin but has been in decline for several years. 

Enoh attributed the company’s struggles to years of mismanagement and neglect, exacerbated by the expiration of a 20-year lease agreement with the Chinese company, Compliant of China, in May 2023.  

Since then, the facility has been left without a core investor to manage and revitalize its operations. 

“Various meetings at both technical and policy levels have continued to be held, but away from these, action is needed,” Enoh stated during his inspection. “This visit is an eye-opener, and more than anything else, we seek its revival.” 

The minister referenced a 2021 joint assessment report that recommended selling Nigeria’s equity stake in the company if no suitable investor could be identified.  

“Where that is not feasible, the recommendation of the 2021 joint assessment report, which submits to the selling of our equity in the company, will be brought to the table for possible consideration,” he said. 

Enoh emphasized the broader significance of the company’s revival stressing that it extends beyond sugar production to securing livelihoods and fostering stronger ties between Nigeria and Benin.  

“This is not just about sugar; it is about livelihoods, partnerships, and the shared future of our nations,” he remarked. 

In November 2024, Niger Foods in partnership with the Nigeria Sugar Development Council initiated steps to revive Nigeria’s $2.5 billion sugar industry. 

The agreement includes developing 250,000 hectares of sugarcane fields and establishing six sugar and ethanol plants in Niger State over the next three years. 

According to Special Adviser to the Niger State Governor on Digital Media and Strategy, Abdullberqy Usman Ebbo, Niger Farms project, will utilize approximately 90,000 hectares of land near the inaugurated Sokoto–Lagos Superhighway, and aims to produce 2.5 million metric tons of sugar, 250 million liters of ethanol, and generate 300 megawatts of electricity. 

The project is expected to create 100,000 direct jobs and 250,000 indirect jobs, while also benefiting 750,000 out-grower participants. 

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