The Savé Sugar Company, a joint venture between Nigeria and Benin Republic established in 1975, is facing a critical juncture, prompting Nigeria to consider divesting its stake if revival efforts fail. The company, once a vital economic engine for both nations, has deteriorated significantly due to years of mismanagement and neglect, culminating in the departure of its last managing entity, Compliant of China, in May 2023. This marked the end of a 20-year lease agreement, further exacerbating the company’s decline. Nigerian Minister of State for Industry, Trade, and Investment, John Enoh, recently undertook a historic visit to the facility in Cotonou, the first by a Nigerian minister since the company’s inception. The visit underscored the urgency of the situation and the importance of the company to both countries. Enoh’s assessment, described as an “eye-opener,” confirmed the dire need for immediate action to revitalize the struggling sugar production facility.
Enoh’s primary objective is to secure a new core investor capable of injecting the necessary capital and expertise to revive the Savé Sugar Company. He emphasized the ongoing efforts to find a suitable investor, highlighting the numerous meetings held at both technical and policy levels. However, he acknowledged the need for concrete action beyond discussions. The minister pointedly referenced a 2021 joint assessment report, which recommended the sale of Nigeria’s equity in the company as a last resort if a viable investor could not be found. Enoh’s statement indicated a willingness to consider this option if the search for an investor proves unsuccessful, signifying a potential shift in Nigeria’s approach to the struggling venture. His declaration that “action starts today” underscores the commitment to finding a resolution, whether through new investment or divestment.
The implications of the Savé Sugar Company’s decline extend beyond the sugar industry itself. Enoh emphasized the company’s crucial role in supporting livelihoods and fostering a stronger partnership between Nigeria and Benin. The revival of the facility, he argued, is not merely about restoring sugar production but also about strengthening bilateral relations and securing the economic well-being of the communities that depend on the company. This perspective highlights the broader socio-economic impact of the company and the importance of finding a sustainable solution for its future. The minister’s visit and subsequent statements signal a renewed focus on the company’s fate and a recognition of its significance within the broader context of Nigeria-Benin relations.
Enoh’s visit to Cotonou included a meeting with Benin Republic’s Minister of Commerce and Industry, Shadiya Assouman. Assouman welcomed the Nigerian delegation and described the visit as a “historic moment,” emphasizing the significance of the first visit by a Nigerian minister to the facility since its inception. Her remarks underscored the importance of the bilateral relationship between the two countries and the shared interest in reviving the Savé Sugar Company. This meeting signifies a renewed commitment from both nations to collaborate on finding a solution for the struggling company and strengthening their economic ties.
The Savé Sugar Company represents more than just a sugar production facility; it symbolizes the intertwined economic and political relationship between Nigeria and Benin. Its decline has had a ripple effect on both economies, impacting livelihoods and straining bilateral ties. The current situation demands decisive action, with Nigeria prepared to consider divestment if a suitable investor cannot be found. The urgency of the situation is underscored by the high-level engagement between the two countries, culminating in Enoh’s historic visit and the joint commitment to finding a resolution.
The future of the Savé Sugar Company hangs in the balance. The Nigerian government’s willingness to consider divestment underscores the seriousness of the situation and the need for a swift resolution. While the search for a new investor continues, the possibility of Nigeria selling its stake looms large. The outcome will have significant implications for the economies of both Nigeria and Benin, as well as for the future of their bilateral relationship. The coming months will be crucial in determining the fate of the company and its impact on the region.
