Nigeria Speaks on Selling Sugar Company in Benin Republic
- FG is considering selling its ownership stake in the Savé Sugar Company in Benin Republic
- This comes after the Cotonou, Benin Republic, sugar plant declined following the departure of its previous managers in May 2023
- The minister also underlined how crucial it is to revive the Savé Sugar Company to forge closer links between Nigeria and Benin
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Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
John Enoh, Nigeria's Minister of State for Industry, Trade, and Investment has said that the Nigerian government may think about selling its ownership stake in the Savé Sugar Company if attempts to find a suitable partner to turn around the faltering plant fail.
Source: UGC
Enoh made this claim in a statement on Wednesday after seeing the sugar factory in Cotonou, Benin Republic, which has fallen precipitously since its previous managers left in May 2023.
The Punch reported that the significance of the venture to both countries was highlighted by his visit, which was the first time a Nigerian minister had been to the facility since it opened in 1975.
He claimed that the Savé Sugar Company, which had once made a substantial contribution to the economies of both Nigeria and Benin, had been neglected and mismanaged for years, and that the situation had gotten worse after a 20-year lease agreement with the Chinese company Compliant of China expired in May 2023.
Enoh observed during his examination how urgent it is to get a new core investor to breathe fresh life into the business.
“Various meetings at both technical and policy levels have continued to be held, but away from these, action is needed. Seeing is believing, as the common saying goes. This visit is an eye-opener and more than anything else, we seek its revival,” Enoh said.
The minister did, however, also cite the results of a joint assessment report from 2021, which suggested selling Nigeria's stake in the project in the event that a suitable investor could not be found.
“Where that is not feasible, the recommendation of the 2021 joint assessment report which submits to the selling of our equity in the company will be brought to the table for possible consideration. Action starts today,” he said.
The minister also emphasized that resurrecting the Savé Sugar Company is important for securing livelihoods and developing stronger ties between Nigeria and Benin, in addition to revitalizing the sugar sector.
“This is not just about sugar; it is about livelihoods, partnerships, and the shared future of our nations,” Enoh added.
Shadiya Assouman, the Minister of Commerce and Industry of the Benin Republic, met with Enoh during his visit. He welcomed the Nigerian group and called the event "historic."
Assouman highlighted the significance of the bilateral relationship between the two countries, noting that “since the inception of the company, no Nigerian minister has visited the facility. Your bold step signifies a commitment not only to the sugar complex but also to the bilateral relations between our nations.”
FG set to serve as loan guarantor for Nigerians
Legit.ng reported that President Bola Tinubu is set to kick off a National Credit Guarantee System (NCGS) that will help bridge the $160 billion credit gap for micro, small, and medium enterprises (MSMEs).
The scheme announced during the president's New Year address will see the federal government as a loan guarantor.
The company is expected to start operations before the end of the second quarter.
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Source: Legit.ng
