Sugar prices to crash in Ibadan, others as Oyo Government increases investment in Iseyin sugar factory by N2.4bn
The Oyo State Government has increased its equity investment in Oyo Sugar and Derivatives Industries Limited, Iseyin, with an additional N2.4 billion, a move expected to boost local sugar production and potentially reduce sugar prices in Ibadan and other parts of the state when the factory begins commercial operations.
The state government disclosed this in a statement posted on its official X handle, noting that the additional investment is aimed at strengthening its equity in the project ahead of the factory’s planned commissioning and commencement of commercial operations in the fourth quarter of 2026.
According to the government, the sugar factory will produce between 24 and 27 tonnes of brown sugar and 18 tonnes of molasses daily upon completion, increasing the local supply of sugar and reducing dependence on products transported from other parts of the country.
The government said the project is also expected to create more than 500 direct jobs while engaging about 1,000 farmers as outgrowers, a development expected to boost agricultural productivity, improve rural livelihoods and strengthen Oyo State’s agro-industrial value chain.
It expressed optimism that the factory would commence commercial operations in the fourth quarter of 2026, describing the additional investment as a major milestone in its drive towards industrialisation, economic diversification and job creation.
The commencement of production at the Iseyin-based facility is also expected to improve the availability of locally produced sugar in Oyo State and neighbouring markets, a development that could ease supply pressures and contribute to more competitive sugar prices across Ibadan and other cities in the region.