The National Sugar Development Council (NSDC) and the Bank of Industry (BOI) have launched a N10 billion Sugar Project Acceleration Fund to support new greenfield sugar projects across Nigeria.
The development was disclosed in a statement by the council on Sunday, as reported by the Voice of Nigeria (VON).
The fund is designed to provide financing and project development support to viable initiatives, with the goal of accelerating growth in a sustainable and competitive sugar industry.
What they are saying
At an interactive session organised by the council, NSDC Executive Secretary and CEO, Kamar Bakrin, stressed that access to capital alone does not guarantee higher sugar production.
He explained that while development finance institutions and impact investors have billions available for agro-industrial financing, a major challenge is the shortage of well-structured and properly documented projects.
- “The National Sugar Development Council (NSDC) and the Bank of Industry (BOI) have established a N10 billion Sugar Project Acceleration Fund aimed at supporting the development of new sugar projects and strengthening Nigeria’s domestic sugar industry.”
- “The initiative, known as the Sugar Project Acceleration Fund (SPAF), is designed to provide financing and project development support for viable greenfield sugar projects across the country.”
Bankable projects must begin with a technically credible feasibility study addressing agronomy, water balance, infrastructure, and environmental and social risks.
Projects must also present a robust financial model, clear capital structure, land tenure framework, outgrower plan, and an experienced management team, while complying with ESG standards.
Bakrin added that the fund will ensure projects meet these standards to become investor-ready, promoting long-term growth in the sugar sector.
Purpose of the acceleration fund
The Sugar Project Acceleration Fund is a structured pre-investment facility to support project promoters with technical, financial, and advisory assistance to develop bankable projects. Bakrin emphasised that it is not a grant, but a results-driven initiative with defined eligibility criteria and deliverables.
- Hadiza Shuaib of BOI explained that the bank will manage the fund, handling credit appraisal, risk management, loan disbursement, monitoring, and account closure.
- The NSDC will provide sector leadership and technical guidance for project development.
- The programme also focuses on skills development and capacity building to ensure sustainable outcomes.
Only businesses involved in sugar or sugar-related activities are eligible for support.
Promoters present at the session included Illaj Sugar, Brent Foods, Crystal Sugar, Legacy Sugar, Saro Sugar, Awaa, Ganic, and Confluence Sugar.
More insights
The fund complements other federal initiatives supporting agriculture. The Federal Government recently approved a N250 billion facility for the Bank of Agriculture (BOA) to provide smallholder farmers with access to credit at single-digit interest rates.
- Agriculture Minister Sen. Abubakar Kyari said the initiative is part of broader efforts to strengthen agricultural insurance and finance facilities, leveraging institutions like NAIC, NAQS, and BOA.
- The N250 billion facility aims to boost agricultural productivity, enhance food security, and equip farmers with modern tools and inputs.
These measures are intended to reduce financial barriers, improve mechanization, and create stronger market linkages for farmers.
What you should know
In September 2025, the Bank of Agriculture secured a $1 billion intervention fund with the African Export-Import Bank (Afreximbank) to strengthen Nigeria’s agricultural value chain.
- The fund addresses financial challenges faced by smallholder farmers, offering affordable credit for inputs, mechanization, and market access.
- The National Smallholder Farmers Fund, approved by President Bola Tinubu, targets smallholder farmers who produce over 90% of Nigeria’s agricultural output.
These interventions are part of ongoing efforts to enhance market access and financial support for the agricultural sector, complementing the sugar industry’s growth initiatives.
