KIA Africa Group has regained full ownership and operational control of Bacita Sugar Company Limited following the resolution of a longstanding financing dispute with Keystone Bank.
The development ends the receivership period that placed the Kwara State-based sugar company under third-party management after enforcement proceedings were initiated over outstanding financial obligations.
In a statement issued over the weekend and signed by the Chairman of KIA Africa Group, Engr. Wale Suleiman, the group said the resolution followed a “constructive conciliation process” between KIA Africa and Keystone Bank.
The dispute dates back to March 2025, when a Federal High Court-backed enforcement action led to the appointment of a receiver-manager over Bacita Sugar Company as Keystone Bank moved to recover approximately N25.36 billion in outstanding debt.
KIA Africa had acquired the company, formerly known as Josepdam Sugar Company, through an Asset Management Corporation of Nigeria (AMCON) process, with financing provided by Keystone Bank. Disagreements over the financing and redevelopment arrangements subsequently culminated in the receivership.
Following the settlement, KIA Africa said control of Bacita Sugar Company had reverted to the group and its shareholders.
The company said the resolution reflected a shared commitment with Keystone Bank to protect the interests of employees, host communities, creditors and investors, while safeguarding the long-term viability of the sugar estate.
FRESH INVESTMENT FOR BACITA
As Bacita Sugar resumes full operations, KIA Africa also announced that an undisclosed institutional investor had injected initial capital into the company.
Although the identity of the investor and value of the investment were not disclosed, KIA Africa described the development as a strong vote of confidence in the commercial prospects of the sugar estate.
The group said the fresh capital would support an ambitious transformation programme aimed at repositioning Bacita as a modern and competitive sugar-producing operation.
The planned investments include the modernization of sugar-processing facilities, rehabilitation of estate infrastructure and expansion of sugarcane cultivation.
KIA Africa also plans to establish large-scale outgrower schemes, upgrade irrigation infrastructure and deploy modern agricultural technologies across the estate.
According to the group, the investment programme is expected to significantly increase production capacity, create direct and indirect employment opportunities and stimulate economic activity in communities surrounding the estate.
The development is also expected to contribute to Nigeria’s efforts to expand domestic sugar production and reduce dependence on imported sugar.
KIA Africa said it remained committed to working with Keystone Bank and other strategic partners as Bacita Sugar Company enters a new phase of growth and development.
The group expressed confidence that the resolution of the financing dispute, combined with fresh investment and planned infrastructure upgrades, would enable Bacita to realize its potential as a major contributor to Nigeria’s sugar industry and broader agro-industrial development.
