Flour Mills of Nigeria (NSE Ticker: FLOURMILLS) in a corporate release on the Nigerian Exchange on Friday, announced a further expansion to its sugar backward integration program (BIP) with the acquisition of 20,450 hectares of land in Nasarawa State.
The move the integrated food business and agro-allied Group said, is part of its commitment to the backward integration programme of the Nigeria Sugar Master Plan, and the overall growth strategy of the Sugar industry in the country.
Investogist reported in April 2021, Flour Mills’ acquisition of 5,200 hectares of land at Sunti, which was also part of the backward integration strategy of the Nigerian Sugar Master Plan. The acquisition than had increased the total land size at Sunti Golden Sugar Estate (Golden Sugar Company is a subsidiary of Flour Mills of Nigeria) to 22,000 hectares of land, with about 15,000 hectares under cane.
The signing ceremony for the new acquisition in Nasarawa State would hold in Abuja on Friday 28th Mar, 2021, to commemorate the official handover of the land by the Governor of Nasarawa State, HE Engr. Abdullahi Sule to Flour Mills.
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The Group Managing Director/CEO of Flour Mills, Mr. Omoboyede Olusanya, in the company of other Senior Executives of the company is expected to accept the handover of the site on behalf of FMN.
The 20,450 hectares is situated at Umaisha Development Area of Toto Local Government Area of Nasarawa State on the north bank of the Benue river, about 70 kilometers upstream from Lokoja.
It is expected that land preparation, including, surveys and initial designs will start immediately in anticipation of the commencement of operations during the course of this year.
The plan is to develop up to 15,000 hectares under cane and to construct a state-of-the-art sugar mill in line with FMN’s BIP commitments and Nigeria’s drive for self sufficiency in sugar production.
The total project is expected to cost at least USD 300 million.
About the company
Flour Mills of Nigeria Plc was incorporated in Nigeria as a private limited liability Company on 29 September 1960 and was converted to a public liability company in November 1978. Its registered head office is located at 1 Golden Penny Place, Apapa, Lagos.
The Group is primarily engaged in flour milling, production of pasta, noodles, edible oil and refined sugar, production of livestock feeds, farming and other agro-allied activities, distribution and sales of fertilizer, manufacturing and marketing of laminated woven polypropylene sacks and flexible packaging materials, development of real estate properties for rental, operation of terminals A and B at the Apapa Port, customs clearing, forwarding agents, shipping agents and logistics.
The shares of Flour Mills of Nigeria Plc was listed on the Nigerian Exchange on January 1st 1970.
It has 4,100,379,605 outstanding shares. At the time of this report, its share price was at 28 Naira.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur