The Governor of Kano State, Abdullahi Umar Ganduje has ended the sugar price war between the Dangote Group and BUA Group of company.
Recall, Aliko Dangote, leader and founder of the Dangote group had petitioned the Federal government, requesting that the BUA Sugar Refinery be shut down.
THE WHISTLER had revealed the Dangote Group, in a letter mutually endorsed by the Aliko Dangote and the Chairman, flour plants of Nigeria PLC, John Coumantaros, expressed that the dispatching of the BUA Port Harcourt processing plant is a demonstration planned to subvert the National Sugar Master Plan of the Federal Government.
The gathering likewise noticed that as per the mid-term survey directed by the public sugar advancement committee, BUA blamed by neglecting to put considerably in neighborhood creation of sugar.
It said, “The sugar industry in Nigeria has been governed for a while now by the National Sugar Master Plan, which is a well designed policy to encourage backward integration in the sugar industry with the ultimate objective of attaining self-sufficiency in sugar production locally.
“With this in mind, we wish to humbly bring to your attention an important issue which we believe threatens the attainment of the National Sugar Master Plan and the sustainability of Nigeria’s local sugar industry of which our two companies are the largest investors.
The Dangote group also stated that the BUA group only seeks to promote imports while claiming to be investing in sugar plantation, adding that Nigeria already has enough refining capacity to satisfy the demand of Nigerians.
Similarly, BUA in its own defence sent to the Minister of Trade stated that the law allows it to sell sugar locally.
While attaching the enabling permits and approval, the Company stated that because of the connivance of the two major sugar manufacturers to hike the price of Sugar during the Ramadan period, the law allows it to sell locally.
BUA also warned that Dangote group and the other major player have not been involved in any backward integration project.
It said rather, they depend on 80 per cent raw sugar allocation which is detrimental to the Nigerian economy in long term analysis.
According to a statement issued by Chief Press Secretary to Kano State Governor, Abba Anwar on Thursday, both parties, Chairman of Dangote Group of Companies (Aliko Dangote) and Chairman BUA Group of Companies ( Abdul Samad Rabiu) were quoted to have dismissed the allegation of sugar price increase by Danfote refinery while agreeing to work together and supply enough sugar to satisfy the demand of the country.
It stated, “They all dismissed the allegation that Dangote was planning to see to the increase of sugar price, through pressuring BUA to succumb to the increment. They described that allegation as baseless and lacking any iota of truth.”
The reconciliation meeting which took place at Kano Governor’s Lodge, Abuja was attended by business mogul, Alhaji Aminu Alhassan Dantata, Kano Emirate and the Kano State Council of Imams.