Oyo Sugar Factory Reaches Commissioning Stage after N2.2bn NSDC Investment
The National Sugar Development Council (NSDC) has committed about N2.2 billion to the development of the Oyo Sugar and Derivatives Industries Limited (OSDL) factory in Iseyin, Oyo State, which has now reached the commissioning and test-running stage.
The 300-tonnes-per-day (TCD) greenfield sugar mill, developed under the Nigeria Sugar Master Plan (NSMP), is one of the new sugar factories established through the plan’s Backward Integration Programme.
The NSDC disclosed this in a statement on the development, saying its financial intervention covered the procurement of the factory’s core sugar mill, as well as sugarcane development and operational support.
According to the Council, it initially funded the procurement of the 300 TCD sugar mill with approximately N1.64 billion, before providing additional funding as the project progressed, bringing its total financial commitment to about N2.2 billion.
The Oyo State Government also contributed an estimated ₦850 million in equity funding towards the completion of outstanding works at the factory.
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While congratulating OSDL promoters, the NSDC said the project had evolved from a cooperative farming venture involving communities in Iseyin into an operational sugar manufacturing facility, following sustained financial, technical and institutional support.
The Executive Secretary and Chief Executive Officer of the NSDC, Kamar Bakrin, said the factory’s readiness for commissioning reflected the combined efforts of the Council, Oyo State Government, project promoters and farming communities.
“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 said the Council would continue to support the factory as it moves into 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 added.
The Council said the OSDL project is expected to contribute to the Federal Government’s efforts to expand domestic sugar production and reduce dependence on imported sugar.
The development also represents a key milestone in the implementation of the NSMP, which seeks to promote local sugarcane cultivation, expand processing capacity and establish an integrated domestic sugar industry.
With the factory now at the commissioning and test-running stage, the project is expected to transition into commercial production and strengthen sugarcane-based industrial activity in Oyo State.
