By Benson Daniel
The National Sugar Development Council has unveiled plans to mobilise about $1 billion in investment to accelerate domestic sugar production and reduce Nigeria’s dependence on imported sugar.
The investment drive forms part of the implementation of the Nigeria Sugar Master Plan 2.0, which is designed to fast track the country’s journey towards self sufficiency in sugar production and retain more value within the domestic economy.
The Executive Secretary and Chief Executive Officer of the NSDC, Kamar Bakrin, said the council is pursuing a $1 billion engineering, procurement, construction and financing partnership with Chinese industrial group SINOMACH.
The arrangement is expected to support the development of large scale sugar projects, including sugarcane cultivation and processing facilities capable of significantly increasing local production.
The council is also working with the Bank of Industry on a N10 billion Sugar Project Acceleration Fund aimed at supporting bankable projects across the sector.
Nigeria currently consumes about 1.8 million metric tonnes of sugar annually, while a significant portion of domestic demand is met through imports. The NSDC estimates that about $1 billion leaves the country each year to pay for imported sugar.
Bakrin said the council’s objective is to redirect a substantial portion of that expenditure into domestic production, creating jobs, increasing rural incomes, conserving foreign exchange and strengthening Nigeria’s industrial capacity.
Under the Sugar Master Plan 2.0, the council is targeting local production of about two million metric tonnes of sugar, a level that could substantially reduce the country’s reliance on foreign suppliers.
The strategy also extends beyond the production of refined sugar. The NSDC is seeking to develop a wider bio industrial ecosystem around sugarcane, with opportunities for ethanol, animal feed and electricity generation from the crop.
The council has also indicated that stronger monitoring will be introduced to ensure that companies benefiting from sugar import quotas comply with their backward integration obligations.
Satellite imagery and field inspections are expected to be used to monitor sugarcane cultivation and verify that companies receiving import incentives are investing in local production as required.
The investment push comes as Nigeria seeks to reduce pressure on its foreign exchange market and strengthen domestic manufacturing and agricultural value chains.
The sugar industry has significant potential to create employment across farming, transportation, processing, logistics and manufacturing, particularly in rural communities where large scale agricultural projects can stimulate wider economic activity.
However, the success of the strategy will depend on effective implementation, access to long term financing, reliable infrastructure, land availability and stronger coordination between government agencies and private sector investors.
The NSDC has maintained that the major challenge facing the industry is no longer a lack of policies but the ability to execute existing plans efficiently and consistently.
With the proposed investment pipeline, financing support and tighter enforcement of backward integration requirements, the council is seeking to move Nigeria closer to producing enough sugar locally to meet domestic demand while developing sugarcane into a broader industrial commodity.
If successfully implemented, the initiative could reduce annual sugar import bills, conserve foreign exchange and position Nigeria’s sugar industry as a major contributor to agricultural industrialisation and economic growth.
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