Nigeria Bans Importation of Refined Sugar, Derivatives

By Aduragbemi Omiyale

The importation of refined sugar and its derivatives into Nigeria from the Free Trade Zones (FTZs) has been prohibited.

This action was taken by the Nigerian government to protect the sugar industry, which is governed by the Nigerian Sugar Master Plan (NSMP).

Already, the Minister of Industry, Trade and Investment, Mr Niyi Adebayo, has issued a circular to the Nigerian Ports Authority (NPA) to ensure strict compliance with this directive.

Also, the NPA has issued a directive to terminal operators of the Lagos Port Complex (LPC), Apapa, Lagos not to allow the importation of refined sugar and its derivatives into the country as disobedience to this policy would not be tolerated.

The letter dated April 8, 2021, and titled RE: Prohibition of Importation of Sugar from the Free Trade Zones into the Nigerian Customs Territory was signed by Mr Buba Jubril for the Port Manager, Lagos Port Complex.

“We have for reference a letter from Minister of Industry, Trade and Investment ref: HMIT1/GEN/ CORR/008/ VOL. I/dated February 15, 2021, on the above subject.

“It has recently come to our notice that due to the recent location of a sugar refinery in a Free Trade Zone, refined sugar is being imported into the Nigerian Customs Territory under the concession granted to enterprises in the Free Trade Zones to export 100 per cent of their output to the Nigerian Customs Territory, and this is a real potential threat to the goals of the Nigerian Sugar Master Plan (NSMP).

“The Nigeria sugar industry is governed by the Nigerian Sugar Master Plan (NSMP). The NSMP provides a framework for motivating investment in the local production of Refined Sugar by securing the Nigerian sugar market for investors in the Backward Integration Program (BIP).

“It does this by providing import sugar allocations for raw sugar to recognised investors based on the performance on the BIP and guided recognition of their installed refining capacity.

“Your terminal is hereby informed by this letter that, in order to protect our national interest and ensure the returns in the federal government’s investment in the NSMP are realised, and in line with extant laws and regulations of the Federal Government of Nigeria, importation of refined sugar and all other sugar derivatives from the Free Trade Zones into the Nigerian Customs Territory are here prohibited by the Minister, Ministry of Industry, Trade and Investment,” the NPA letter stated.

“In view of the above, your terminals are by this letter directed to ensure strict compliance with this directive. Please accept as always the assurances of our esteemed regards,” it added.