N2.2bn NSDC investment, N850m Oyo State equity funding drive completion of Iseyin facility….
The long-awaited Oyo Sugar and Derivatives Industries Limited factory in Iseyin, Oyo State, has moved closer to full commercial production, with the facility now undergoing commissioning and test-running after more than a decade of development.
The development marks a major step forward for Nigeria’s efforts to expand local sugar production, with the National Sugar Development Council (NSDC) saying the project has benefited from more than a decade of financial, technical and institutional support.
The 300-tonnes-per-day greenfield sugar mill was developed under the Backward Integration Programme of the Nigeria Sugar Master Plan, a framework designed to increase domestic sugar production and reduce the country’s reliance on imported sugar.
According to the NSDC, the council initially committed about N1.64 billion to the procurement of the factory’s core sugar mill before providing further funding for sugarcane development and operational support. Its total financial commitment to the project now stands at approximately N2.2 billion.
The Oyo State Government also played a role in pushing the project towards completion, contributing an estimated N850 million in equity funding to address outstanding works at the facility.
NSDC Executive Secretary and Chief Executive Officer, Kamar Bakrin, attributed the factory’s readiness for commissioning to the sustained commitment of the council, the Oyo State Government and the project promoters.
“That this factory now stands ready for commissioning is the result of sustained commitment — by the Council, by the Oyo State Government and by the promoters themselves,” Bakrin said.
He stressed that the council’s involvement would continue beyond the commissioning stage, particularly as the factory prepares to commence full-scale commercial operations.
“Our work does not end here. The NSDC will remain engaged as OSDL moves into full-scale commercial production, and we expect this project to serve as proof that Nigeria’s sugar sector can be built on locally grown cane,” he said.
The council also recognised the contribution of the project promoters and farming communities in Iseyin, noting that the initiative had evolved from a cooperative farming venture into an operational sugar factory.
The Iseyin project is among the few new-build sugar factories to emerge from the Backward Integration Programme of the Nigeria Sugar Master Plan, which seeks to strengthen local sugar production, develop the country’s sugar value chain and reduce dependence on imported sugar.
