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KIA Africa Group and Keystone Bank have resolved their dispute over the financing and redevelopment of Bacita Sugar Company Limited, paving the way for the company’s exit from receivership.
The company disclosed this in a statement issued over the weekend, saying full ownership and operational control of Bacita Sugar Company had been restored to the company and its shareholders following an amicable resolution of outstanding issues between the parties.
The group, in the document signed by its representative, Engr. Wale Suleiman, said the resolution followed a constructive conciliation process and reflected the commitment of both KIA Africa and Keystone Bank to preserving and revitalising Bacita Sugar Company, an important agro-industrial asset in Nigeria’s sugar industry.
According to KIA Africa, the resolution will allow stakeholders to shift their attention towards rebuilding the company’s operations, attracting additional investment, creating employment and restoring Bacita Sugar to a significant position in Nigeria’s agricultural and industrial sectors.
The group also disclosed that it had secured the support of a leading institutional investor, which had already provided a substantial initial capital injection into the Bacita project.
It said the investment would support a transformation programme involving the modernisation of processing facilities, rehabilitation of estate infrastructure, expansion of sugarcane cultivation and implementation of large-scale outgrower programmes.The programme, the group noted will also include improvements to irrigation systems and the deployment of modern agricultural technologies.
KIA Africa said the redevelopment was expected to increase Bacita Sugar’s production capacity, create thousands of direct and indirect jobs and stimulate economic activity in its host communities.
It added that the project would contribute to Nigeria’s sugar self-sufficiency objectives under the National Sugar Master Plan.Beyond sugar production, the group said its long-term plans for Bacita included ethanol production, renewable energy initiatives, agricultural support services, logistics infrastructure and community development programmes.
KIA Africa said the successful resolution of the outstanding matters had provided renewed confidence to employees, business partners, investors, regulators, host communities and other stakeholders.
The group also reaffirmed its commitment to working with Keystone Bank and other partners to ensure the long-term success of the project and unlock its economic and social benefits for Kwara State and Nigeria.
“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,” it stated.
Bacita Sugar Company is located in Edu Local Government Area of Kwara State and is regarded as one of the country’s notable
