The Oyo Sugar and Derivatives Industries Limited factory in Iseyin, Oyo State, has entered the commissioning and test-running stage after more than a decade of development, marking a major step towards boosting Nigeria’s domestic sugar production.
Key Highlights
- Oyo Sugar Factory in Iseyin enters commissioning and test-running stage.
- The 300-tonnes-per-day facility has been in development for more than a decade.
- NSDC invested about ₦2.2 billion in the project.
- Oyo State Government contributed approximately ₦850 million in equity funding.
- The factory was developed under Nigeria’s Sugar Master Plan Backward Integration Programme.
- Facility is expected to increase locally produced sugar and reduce dependence on imports.
- NSDC says it will continue supporting the factory towards full commercial production.
Oyo Sugar Factory Reaches Test-Running Stage
The National Sugar Development Council (NSDC) announced the development in a statement on Thursday, describing the commencement of test-running as a major milestone following years 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, which seeks to increase domestic sugar production through investments in local sugarcane cultivation and processing.
According to the NSDC, the council initially funded the procurement of the factory’s core sugar mill with about ₦1.64 billion.
It subsequently provided additional funding for sugarcane development and operational support, bringing its total financial commitment to the project to approximately ₦2.2 billion.
Oyo Government Invests ₦850 Million
The Oyo State Government also contributed an estimated ₦850 million in equity funding towards the completion of outstanding works at the facility.
The NSDC said the combined interventions by the council, the state government, project promoters and farming communities helped move the initiative from its earlier stages into an operational sugar factory.
NSDC Executive Secretary and Chief Executive Officer, Kamar Bakrin, said the factory’s readiness for commissioning reflected sustained commitment from all stakeholders.
“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.
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NSDC Promises Continued Support
Bakrin assured that the council would remain involved as the factory progresses towards full-scale commercial production.
“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 commended the project promoters and farming communities in Iseyin for helping transform the initiative from a cooperative farming venture into an operational sugar manufacturing facility.
Factory to Boost Local Sugar Production
The NSDC described the Oyo Sugar Factory as one of the few new-build sugar factories to emerge from the Backward Integration Programme of the Nigeria Sugar Master Plan.
The programme is designed to encourage local sugarcane cultivation, expand domestic sugar production and reduce Nigeria’s reliance on imported sugar.
With the commencement of test-running, the Iseyin facility has moved closer to full commercial operations, potentially strengthening Nigeria’s sugar production capacity while creating opportunities across sugarcane farming, processing and related value chains.
The development is also expected to reinforce efforts to build a more sustainable domestic sugar industry based on locally grown sugarcane.
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