Mokwa Local Government Area in Niger State, Nigeria has been renowned for the famous A1 highway that connects the North to the Western part of the country. The A1 highway crosses the River Niger at Gana to Jebba in Kwara State.
With an estimated population of 244,937 (2006 census estimate), the long southern border of the local government is formed by the Niger River from Lake Jebba in the west beyond the confluence of the Kaduna River in the east. Kwara State and Kogi State are across the River Niger from the local government.
Not until 2016, nothing much was heard of the area called Mokwa. But in the last six years, reference to Mokwa town is taking a different narrative owing to the debut and incremental growth and expansion of the investment of the Flour Mills of Nigeria Sunti Golden Sugar Mills, with the initial injection of about N45 billion in one of only two sugar mills in the country capable of producing crystallized sugar from locally grown sugar cane.
During a facility tour of the company in April 2016 when it was freshly built, governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, said: “The bank invested about N26 billion in the project in order to encourage import substitution and backward integration strategy. Such investments are geared toward self-sufficiency, generate employment and create wealth.”
Asl speaking then, the Chairman of the Flour Mill of Nigeria Group, owners of Sunti Golden Sugar Company, John Coumantaros, said the CBN’s support had led to the scheduled completion of the project.
Coumantaros said the N45 billion sugar-refining project was expected to create over 15,000 jobs, including 3,500 direct jobs and 3,000 small scale out-grower farmers, and that the company will save over $50 million in foreign exchange for the country annually.
These are no longer mere sayings because today, the story of Mokwa is laced with the success of a company that has successfully united both industry and agriculture and has succeeded in creating jobs, developed capacities, and enriched the livelihoods of members of its host communities.
Since coming on stream, the story of the adjourning communities has taken a leave for the better. Sunti Golden Sugar Estates has made a considerable impact benefitting 32 communities around its production area since commissioning some of its projects.
The company has ensured that its host communities benefit from its existence through the provision of roads, the building of schools, electrification, healthcare, in addition to creating job opportunities.
Daily Trust observed that instead of adopting mechanised farming, which saves cost and time, the company adopted manual labour for some of its activities, just to provide jobs for the members of the host communities.
It has also given preference to the female folks that specialise in planting the canes and 1,500 workers that specialise in crop maintenance and irrigation.
One of the leaders of the planting team, Ramat Labran, a National Certificate of Education (NCE) holder in Home Economics said: “From my salary here, I assist my parents; I sponsor my younger ones to School. It is the same for my colleagues here.
“I have learnt a lot here. I have deep knowledge about different varieties of sugarcane. I can identify the seed that can germinate and other strategies of planting sugarcane.”
Mohammed Usman Ibba, an indigene of Sunti community, who has risen to the position of agricultural manager of the Sunti Golden Sugar Estate said: “When I joined them in 2012, they had 64 hectares under cultivation, but today they have over 3,500 hectares under cane cultivation with over 3,500 workers.
“The more they expand, the more they keep employing from our communities. The good thing about employment is that all the workers are well taken care of. The company currently feeds over 4,000 of its workers daily and provides medical support for its host communities and periodic screenings.”
With 4,200 workers in its employ and a target of 7,000 direct and 50,000 indirect jobs for the value chain, 200 housing units were provided to cater for staff accommodation and 40 port cabins to reduce the stress of commuting from their houses to the factory.
In addition to two guest houses with 14 rooms, there is the provision of housing units for 1,600 cane cutters and another housing unit for 1, 200 workers still under construction.
As part of its Backward Integration Policy, a total of 12 out growers were sponsored to Mali to learn the best agronomic practices in sugarcane cultivation.
One of the outgrowers, Issa Hussein Lwafu, a resident of Lwafu community, said the scheme started about three years ago, with 34 communities. “We were trained by the company on the best agronomic practices of cultivating sugarcane, after which we were provided free land, irrigation facilities, seedlings, chemicals and extension agents, who from time to time provide us with advice and support.
“Each of the host communities was given a hectare each, which we utilise for the outgrowers scheme. But during the last flooding incident, when the River Niger overflew its bank and destroyed our plantations, the company still compensated us, despite the enormity of the flood. This year, they have given us the necessary things for cultivation.”
Lwafu said before the coming of FMN, communities in the area are predominantly rice farmers, “but when the FMN came here, we actually saw the difference between the previous crop we engaged in and this initiative, we also benefited immensely. For instance, our children who have completed their schooling now have the opportunity to work in the company.
“Secondly, the communities have discovered that it is more lucrative to cultivate sugarcane than rice because it brings a lot of returns more than rice cultivation and that’s why their coming is actually a blessing to Mokwa people.”
It was learnt that the farmers were given an expanse of land for personal cultivation of rice, to make extra income. More so, our reporter observed that wastes from the production process are used to generate six megawatts of electricity to power the entire factory and the entire estate, in addition to conversion of the remnants to composite manure used as fertilizer on the farm.
At a time when many companies in Nigeria are looking inwards to source raw materials locally amid the foreign exchange crisis, the advanced backward integration projects of Flour Mills of Nigeria (FMN) puts the company at an advantage for growth and economic support.
While there is a clear need for greater diversification of the Nigerian economy to promote quality growth, economic transformation, and employment, a company like FMN, one of Nigeria’s leading food and agro-allied companies has been able to position itself at the forefront of backward integration through investments in local production.
As part of its expansion plans, the General Manager of the company, Anlo du Pisani, revealed that as part of its Backward Integration Programme (BIP), it is targeting 21,000ha of sugarcane plantation; 2,200 tons of cane; and 250,00 tons of sugar, that will create 12,500 direct jobs
Currently, development is being done in our two sites – Sunti Golden Sugar Estates, situated 30 kilometre east of Mokwa on the left bank of the Niger river, with 22,000ha of land already developed and Umaisha in Nasarawa State, situated on the right bank of River Benue, 30km east from the confluence of the Benue and Niger Rivers. A total of 20,000ha of land has been developed.”
Pisani revealed that part of the company’s BIP work plan for this year includes the development of 15,000ha under cane and 5,000ha as an integrated out-grower scheme.
he said: “To achieve this target, our work plan for this year consist of – Sunti 1 (Low Land Development), plough out plan on 850ha and further development of Sunti 1by adding another 700ha of new planting area; to cater for higher crop increase cane haulage capacity by addition of harvesting equipment and modifying the cane carrier with tippler to accommodate all methods of cane haulage; further strengthening of dikes and extension of the outgrower programme.
“For Sunti 2 and 3 (Upland Development), we are developing 5,000ha under drip irrigation. We are planning to build 33km of haulage road; construction of site office; provision of accommodation for employees and workers; construction of offices and stores; dredging of 12km of Niger River water supply channel; construction of primary pump station with 20,000 million litres capacity per hour; installation of 12.5km bulk water pipeline lifting water; construction of 200,000m reservoir and secondary pump station, among others.
Like most of its investments in the agricultural sector, the Sunti Sugar Estates is raising the living standards of people, particularly those in the rural areas, strengthening the capabilities of small-scale farmers and providing them a route to the market.
It is also a testament to the faithful implementation of the Backward Integration Programme (BIP) of the federal government for the sugar industry which is crucial to Nigeria’s quest to attain self-sufficiency in sugar production.
CBN Governor Godwin Emefiele recently said Nigeria spends $100 million on the importation of white sugar annually but analysts believe that with a venture like Sunti Golden Sugar Estate, that amount will transform into a net gain rather than import in the near future, with its intense expansion focus.
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