The Oyo Sugar and Derivatives Industries Limited factory in Iseyin, Oyo State, has reached the commissioning and test-running stage after more than a decade of development.

The National Sugar Development Council NSDC disclosed this in a statement on Thursday, describing the development as a major milestone following years of financial, technical and institutional support.

The 300-tonnes-per-day greenfield sugar mill was developed under the Backward Integration Programme of the Nigeria Sugar Master Plan, which seeks to increase domestic sugar production and reduce the country’s dependence on imported sugar.

The NSDC said it funded the procurement of the factory’s core sugar mill at about N1.64 billion and subsequently provided additional funding for cane development and operational support.

Its total financial commitment to the project stood at approximately N2.2 billion.

The Oyo State Government also contributed an estimated N850 million in equity funding towards the completion of outstanding works.

The Executive Secretary and Chief Executive Officer of the NSDC, Mr Kamar Bakrin, said the factory’s readiness for commissioning was the result of sustained contributions from the council, the state government and the project promoters.

Bakrin said the council would remain involved as the factory progressed towards 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 said.

The council commended the project promoters and farming communities in Iseyin for developing the initiative from a cooperative farming venture into an operational factory.

It said the project was one of the few new-build sugar factories to emerge from the Backward Integration Programme.

The programme is designed to promote local cultivation and processing of sugarcane, expand domestic production and reduce Nigeria’s reliance on imported sugar.

The factory’s movement into test-running is expected to mark the beginning of its transition towards full commercial production and increased participation of local farmers in the sugar value chain.