NIGERIA – Nigeria has inaugurated the construction work of a soybean oil refining plant based in Kutungare in Kaduna State.
With a total cost of US$50 million, this project is financed by the company Sunagrow International Oil Limited, which specializes in the production and marketing of edible oil.
The plant is expected to be completed soon, poised to have a production capacity of 500,000 litres per day and create thousands of direct and indirect jobs for citizens.
Governor Uba Sani, who performed the groundbreaking ceremony, expressed his delight at the investment, stating it will significantly contribute to the economic development of the state and Nigeria as a whole.
He urged the management of Sunagrow International Oil Ltd to invest in community development initiatives and adopt environmentally friendly oil extraction methods.
“The implementation of this soybean processing project will increase the creation of added value in the sector through the production of soybean oil or flour, aligning perfectly with our desire to attract investment to the state and stimulate economic growth in the region,” said Mr. Sani.
On his part, Mr. Ritesh Argawal, the managing director of Sunagrow International Oil Limited, said the company was inspired by Governor Sani’s vision for the economic development of Kaduna State.
According to him, the establishment of this soya bean extraction and refinery project will enable the addition of value to agricultural products by processing them into higher-value products such as soya oil and meal, thus increasing the income potential for farmers.
For its supply of raw materials, the factory will be able to count on the state-level sector, which accounts for 12% of the country’s total production, ranging between 1 and 1.2 million tons per year, according to the American Department of Agriculture (USDA).
In Nigeria, soybean oil is increasingly appreciated by middle-class consumers in urban areas, encouraging investments in oilseed processing.
The Soya Bean Oil Refining Plant is expected to have a multiplier effect on the local economy, creating opportunities for local businesses to supply raw materials, services, and support activities to the company.
This will improve the local economy and increase the income potential for farmers. In Africa’s most populous country, the processing industry provides about 90% of soybean oil consumption, which is around 175,000 tons per year, according to the USDA.
Governor Uba Sani also called on other investors to take advantage of the attractive incentives offered by the state government, assuring them of a robust policy framework and unwavering support.
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