KIA Africa Group has announced the resolution of outstanding issues surrounding the financing and redevelopment of Bacita Sugar Company Limited, paving the way for the restoration of full ownership and operational control of the company to KIA and its shareholders.
The development follows an amicable resolution between the relevant stakeholders and a constructive conciliation process involving KIA Africa Group and Keystone Bank, according to a statement issued by the company on Sunday in Lagos.
KIA said the resolution had effectively brought an end to the issues that led to the receivership and cleared the way for a fresh phase of investment and operational restructuring at the Kwara-based sugar company.
The company said the outcome reflected the shared commitment of KIA and Keystone Bank to preserving and revitalising Bacita Sugar Company, which it described as one of Nigeria’s important agro-industrial assets.
The statement, signed by KIA Africa Group’s Engr. Wale Suleiman, said the conciliation process was characterised by cooperation, professionalism and goodwill among the parties.
“The successful conclusion of this conciliation process demonstrates the value of our constructive engagement and shared commitment to practical solutions,” the company said.
KIA added that institutional investors had already demonstrated confidence in the future of the Bacita project by providing capital support that enabled the company to achieve important financial milestones and strengthen the foundation for its revival.
“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,” it said.
Investor-backed transformation
According to the company, the resolution marks the beginning of a new phase in the history of Bacita Sugar Company, which it described as a cornerstone of Nigeria’s sugar industry.
KIA disclosed that it had secured the support of a leading institutional investor as part of its long-term strategy for the rehabilitation and expansion of the sugar company.
It said the investor had already provided a substantial initial capital injection, describing the investment as a major vote of confidence in Bacita’s commercial viability and future prospects.
The company said the fresh capital and renewed control would enable it to commence an ambitious transformation programme aimed at repositioning Bacita as a major player in Nigeria’s sugar value chain.
The planned redevelopment, according to KIA, will involve the modernisation of processing facilities, rehabilitation of critical estate infrastructure and expansion of sugarcane cultivation.
It will also include the implementation of large-scale outgrower programmes, improvement of irrigation systems and deployment of modern agricultural technologies to enhance productivity and production capacity.
KIA said the programme was expected to substantially increase sugar production while creating thousands of direct and indirect employment opportunities.
The company also projected that the revival would stimulate economic activities in communities surrounding the Bacita estate and contribute to Nigeria’s efforts to reduce its dependence on imported sugar under the National Sugar Master Plan.
Beyond sugar production
KIA said its long-term vision for Bacita extends beyond conventional sugar production, with plans to develop an integrated agro-industrial ecosystem around the estate.
The proposed ecosystem will include ethanol production, renewable energy initiatives, agricultural support services and logistics infrastructure, alongside community development programmes.
