Bacita Sugar Exits Receivership as KIA Africa Secures Investor Backing
- Bacita Sugar Company has exited receivership, restoring ownership and operational control to shareholders
- KIA Africa secured institutional investor backing for Bacita's revitalisation and major expansion plans
- The transformation aims to boost Nigeria's sugar self-sufficiency and create jobs through modern agricultural practices
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Bacita Sugar Company has exited receivership following an amicable resolution of outstanding financing and redevelopment issues involving KIA Africa Group and Keystone Bank, according to a statement issued by KIA on Sunday.
The development paves the way for the company to resume its long-term transformation programme, with KIA Africa saying it has secured backing from an institutional investor to support the revival of the major agro-industrial asset in Kwara State.
Source: Getty Images
Ownership and control restored
KIA Africa said full ownership and operational control of Bacita Sugar Company have been restored to the company and its shareholders following a constructive conciliation process involving the relevant stakeholders.
The investment group said the resolution reflects a shared commitment by KIA and Keystone Bank to preserving and revitalising Bacita Sugar Company while protecting the interests of stakeholders.
KIA expressed confidence that the settlement would benefit employees, host communities, creditors, investors and the wider Nigerian economy.
The company said institutional investors have already provided capital support, helping it meet important financial milestones and strengthening the foundation for Bacita's revival.
Investor backing targets major expansion
With the receivership issue resolved, KIA Africa said its focus would now shift to rebuilding operations, attracting additional investment and restoring Bacita Sugar to a leading position in Nigeria's agricultural and industrial sectors.
The group said its revitalisation programme will involve modernising processing facilities, rehabilitating critical estate infrastructure, expanding sugarcane cultivation and introducing large-scale outgrower schemes.
The plan also includes improvements to irrigation systems and the deployment of modern agricultural technologies.
According to KIA, the investment programme is expected to increase production capacity while generating thousands of direct and indirect jobs and stimulating economic activity in surrounding communities.
Bigger plans for Nigeria's sugar industry
The proposed transformation is also expected to support Nigeria's push for greater sugar self-sufficiency under the National Sugar Master Plan.
Beyond sugar production, KIA said its long-term vision is to develop Bacita into an integrated agro-industrial ecosystem.
The proposed ecosystem could include ethanol production, renewable energy projects, agricultural support services, logistics infrastructure and community development initiatives.
KIA believes the broader model could generate additional economic opportunities for Kwara State and contribute to Nigeria's industrial development.
Source: Getty Images
Focus turns to Bacita's revival
KIA Africa said the resolution has provided renewed confidence for employees, business partners, investors, regulators and host communities as Bacita enters a new phase.
The group also reaffirmed its commitment to working with Keystone Bank and other partners to ensure the long-term success of the project.
Bacita Sugar Company is regarded as one of Nigeria's significant agro-industrial assets, and its planned revival could have implications for domestic sugar production, employment and agricultural value-chain development.
FG moves to crash sugar prices, engages manufacturers
Legit.ng earlier reported that the Nigerian government has begun efforts to reduce the country's rising sugar prices and improve local producers' capacity.
Doris Uzoka, the ex-Minister of Trade and Investment, disclosed this on Wednesday, January 10, 2023, after touring sugar companies in Nigeria.
Source: Legit.ng
