Hope rises as parties end dispute over Bacita Sugar Company

KIA Africa Group, and Keystone Bank have amicably resolved all outstanding issues relating to the financing and redevelopment of Bacita Sugar Company. This has paved the way for the restoration of full ownership and operational control to the company and its shareholders.

Federal and Kwara state governments had for years tried to rally stakeholders to revamp the company to no avail. 

Engr. Wale Suleiman, in a statement signed on behalf of KIA Africa Group issued on Sunday in Abuja, said the resolution followed a constructive conciliation process undertaken by both parties, reflecting their shared commitment to preserving and revitalising one of Nigeria’s most important agro-industrial assets while ensuring that all stakeholders’ interests are appropriately protected.

“The successful conclusion of this conciliation process demonstrates the value of our constructive engagement and shared commitment to practical solutions. We are particularly encouraged by the confidence shown by institutional investors who have already provided capital support that enabled the achievement of important financial milestones and strengthened the foundation for Bacita’s revival,” the statement read.

KIA Africa Group acknowledged the spirit of cooperation, professionalism, and goodwill that characterised the conciliation process, expressing confidence that the outcome would serve the best interests of the Company, its employees, host communities, creditors, investors, and the broader Nigerian economy.

“With the issues between all stakeholders now amicably resolved, attention can fully shift toward rebuilding operations, attracting additional investment, creating employment opportunities, and restoring Bacita Sugar Company to its rightful position as a major contributor to Nigeria’s agricultural and industrial development,” the statement added.

The Group said it remains committed to working collaboratively with Keystone Bank and all its partners to ensure the long-term success of the project and to unlocking the significant economic and social benefits that a fully revitalised Bacita Sugar Company can deliver to its host communities, Kwara State, and Nigeria as a whole.

According to the statement, the resolution marks the beginning of a new phase in the history of Bacita Sugar Company, one of Nigeria’s most significant agro-industrial assets and a cornerstone of the country’s sugar industry.

As part of its long-term revitalisation strategy, KIA Africa Group disclosed that it has secured the support of a leading institutional investor whose confidence in the Bacita project has already been translated into a substantial initial capital injection, describing the development as a major vote of confidence in the commercial viability and prospects of the Company.

Building on this momentum, the statement said KIA Africa Group has developed an ambitious transformation programme designed to restore Bacita Sugar Company as a leading participant in Nigeria’s sugar value chain.

The programme includes the modernisation of processing facilities, rehabilitation of critical estate infrastructure, expansion of sugarcane cultivation, implementation of large-scale outgrower programmes, enhancement of irrigation systems, and the deployment of modern agricultural technologies.

The redevelopment strategy, the Group noted, is expected to significantly increase production capacity, create thousands of direct and indirect employment opportunities, stimulate economic activity across host communities, and contribute meaningfully to Nigeria’s sugar self-sufficiency objectives under the National Sugar Master Plan.

Beyond sugar production, KIA Africa Group said its long-term vision for Bacita includes the development of an integrated agro-industrial ecosystem incorporating ethanol production, renewable energy initiatives, agricultural support services, logistics infrastructure, and community development programmes capable of generating sustainable economic benefits for Kwara State and Nigeria as a whole.

“At KIA, we recognise the strategic importance of Bacita Sugar Company to Nigeria’s agricultural and industrial development agenda and hereby reaffirm our commitment to supporting initiatives that promote sustainable growth, job creation, food security, and industrialisation.

The successful resolution of all outstanding matters provides renewed confidence for employees, business partners, investors, regulators, host communities, and other stakeholders as the Company enters its next phase of development and growth.”