Nigeria-Africa Finance Corporation (AFC), Africa’s leading infrastructure solutions provider, has approved a US$200 million corporate facility for BUA Industries Limited, a BUA Group (BUA) member, to complete its vertically integrated sugar facility in Lafiagi, Kwara State, Nigeria.
The proceeds will be used to develop, build, commission, and operate a 20,000-hectare plantation, a 2,200,000-tonne sugar milling plant, and a 200,000-tonne-per-year sugar refinery that will process and refine white sugar. The facility will also include an ethanol plant capable of producing 25 million litres of ethanol per year, as well as a 35-megawatt power plant that will generate renewable energy from bagasse – sugarcane residue (the Lafiagi Sugar Project or the Project).
The Project will export excess energy not consumed on site to the national grid and will recycle the majority of its waste products, including bagasse, effluents, and vinasse, for energy production, irrigation, and fertilizer production.
The Project, which is supported by a focus on import substitution and vertical integration, will enable BUA Group – a leading food, infrastructure, mining, and manufacturing conglomerate – to ensure long-term self-sufficiency for its sugar operations. The Group’s strategy is also consistent with the Federal Government of Nigeria’s Sugar Master Plan, which emphasizes backward integration programs for sugar production self-sufficiency.
“We are pleased to support this landmark project, which will significantly reduce Nigeria’s sugar import bills, which are currently estimated at over US$400 million per year,” said Samaila Zubairu, President & CEO of AFC. The Project should over its useful life reduce Nigeria’s sugar import bills by approximately US$2B and create about 15,000
“We are pleased to partner with Africa Finance Corporation – a leading multilateral finance institution focused on Africa’s infrastructure and industrial development – on our Lafiagi Sugar Project, which is one of the most ambitious sugar plantation projects in West Africa,” said Abdul Samad Rabiu, Founder and Executive Chairman of BUA. When completed, the Project will use best-in-class processing technology and clean renewable energy to treat and recycle effluents, agricultural waste, and solid waste. Furthermore, the Project will go a long way toward alleviating Nigeria’s current reliance on imported sugar raws by utilizing homegrown processed cane sugar and significantly reducing unemployment in the community through our integrated outgrowers initiative.”
The African Development Bank (AfDB) was established in 2007 to catalyze private-sector-led infrastructure investment across Africa. It is Africa’s second highest rated multilateral financial institution in terms of investment grade. To address Africa’s infrastructure development needs and drive sustainable economic growth, AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital. AFC invests in high-quality infrastructure assets that provide critical services in the power, natural resources, heavy industry, transportation, and telecommunications sectors. Since its inception, AFC has invested over $9.3 billion in projects in 35 African countries.