(Ecofin Agency) - Nigeria’s Bank of Industry (BoI) just announced the creation of a $3 billion fund directed towards the promotion of the entire value-chain of sugarcane production and processing in the country. According to the institution, the funding should allow for the provision of single-digit interest rate loans to farmers and investors.

Representing the bank’s director Rasheed Olaluwa, Raymond Adenuga, BoI Lagos state officer, invited producers to form cooperatives in order to benefit from this opportunity. He added that “BoI does not give loans to private individuals, but only recognizes corporate bodies and joint businesses”.  

According to analysts, BoI’s initiative falls in line with government’s strategy which aims to reduce imports and dependence on oil and petroleum products. It occurs in an environment which is characterized by a fall in oil prices that started a year ago.

Olusegun Aganga, Minister of Industry under the past government, said a few months ago that the country was importing about 97% of the sugar it consumes.

Aaron Akinocho