BUA Foods nears completion of Nigeria’s largest sugar plant

BUA Foods Plc is nearing completion of what is set to become Nigeria’s largest integrated sugar facility, as the company pushes to deepen local production in a country heavily reliant on imports for the commodity.

Located in Lafiagi, Kwara State, the project is about 80% complete and underscores Abdul Samad Rabiu’s commitment, as chairman of BUA Foods Plc, to industrialisation and transformative investments that drive economic growth.

“What we are building here in Lafiagi will be the largest sugar mill, sugar plantation and sugar refinery in this country with a 10,000 tons of cane processing capacity per day,” Kabiru Rabiu, group executive director of BUA group, said Monday during an inspection tour of the site by senior government officials. “We will be generating 35 megawatts of electricity from bagasse, and process 20 million liters of industrial ethanol per annum.”

Read also: BUA rewards 510 long-serving staff with N30bn

He acknowledged delays on the project but said momentum has picked up. “Yes, we have had some delays, but now, we have really gotten things on serious momentum, and we will continue with the plantation.”

The Lafiagi Sugar Company Limited project, known as LASUCO is being developed as a fully integrated operation spanning sugarcane plantations, milling and refining facilities, an ethanol plant, irrigation systems, airstrip and a power station. The complex also includes housing, healthcare and education facilities for workers and host communities, all situated on roughly 20,000 hectares of land.

Rabiu spoke during a visit by John Owan Enoh, minister of state for industry, and a delegation from the Nigerian Sugar Development Council led by its executive secretary, Kamar Bakrin.

The inspection formed part of the federal government’s efforts to track progress on major industrial projects and reinforce its backward integration policy, which aims to expand domestic production, reduce import dependence and support industrial growth under President Bola Tinubu’s economic agenda.

After touring the facility, Enoh said the scale of infrastructure already in place underscored the importance of completing the project. “It is amazing to see the kinds of things I have seen on ground in terms of the necessary infrastructure, such as the road, the landing point of about 3 kilometers and the provision for workers and community,” he said. He added that the site also has “the necessary infrastructure for the takeoff of LASUCO,” noting that progress must continue until completion.

The minister described LASUCO as a landmark investment for the sector, stressing its size and strategic importance. “My understanding is that LASUCO is the largest green field factory by any of the majors; 10,000 tons of cane per day capacity at completion, so this factory has to be completed,” Enoh said. He added that the visit reinforced confidence in the project’s management and the need for continued collaboration with government to meet delivery timelines.

Before the inspection, according to a statement from BUA Foods, the delegation paid a courtesy visit to Mohammed Kudu Kawu, the Emir of Lafiagi, highlighting the role of host communities in supporting large-scale industrial investments. The Emir welcomed the project, saying it aligns with local development priorities. “We are interested in the sugar masterplan to be operational, because we know what it can do for us,” he said.

Bakrin, head of the Nigerian Sugar Development Council, said the scale of the investment sets it apart within the industry and reaffirmed the council’s commitment to supporting its completion. “Nobody has invested in a sugar factory as much as BUA Foods,” he said.

Once operational, LASUCO is expected to produce about 220,000 metric tons of refined sugar annually, alongside power and ethanol output that could support adjacent industries.

The project is central to Nigeria’s push to conserve foreign exchange, stabilise supply and create jobs across the agricultural value chain.

BUA Foods said construction will continue at an accelerated pace as it works toward completing the facility, reinforcing the company’s long-term bet on Nigeria’s sugar industry and its broader strategy of building large-scale domestic manufacturing capacity.

Join BusinessDay whatsapp Channel, to stay up to date