Nigeria targets sugar self-sufficiency with $1 billion pipeline, N10 billion fund

The National Sugar Development Council (NSDC) has intensified efforts to achieve sugar self-sufficiency in Nigeria, leveraging a $1 billion investment partnership and a N10 billion project acceleration fund to boost local production and reduce dependence on imports.

Executive Secretary of the NSDC, Mr. Kamar Bakrin, disclosed this during a courtesy visit by the Abuja Chapter of the Chartered Institute of Directors (CIoD), according to a statement issued on Sunday in Abuja.

Bakrin said the Council is repositioning Nigeria’s sugar industry as a major investment destination under the Nigeria Sugar Master Plan (NSMP) 2.0, with a focus on expanding domestic production and strengthening value chains across the sector.

What they are saying

According to Bakrin, Nigeria consumes about 1.8 million tonnes of sugar annually and spends roughly $1 billion each year on imports.

He noted that the NSMP 2.0 aims to reverse this trend by raising domestic sugar production to approximately 2 million tonnes, enabling the country to meet local demand through local output.

• “We do not lack policy. What we have struggled with is world-class execution,” Bakrin said.

He explained that the Council has strengthened the Backward Integration Programme (BIP) to ensure companies benefiting from import quotas are making verifiable investments in local sugar production.

To improve compliance, the NSDC will deploy satellite imagery and field inspections to independently monitor sugar production activities across project sites.

N10 billion fund to unlock bankable sugar projects

Bakrin said the recently launched N10 billion Sugar Project Acceleration Fund, established in partnership with the Bank of Industry (BOI), will provide financing for feasibility studies, project preparation, and other pre-investment activities.

According to him, the initiative is designed to create a pipeline of bankable projects capable of accessing a $1 billion Engineering, Procurement, Construction and Finance (EPC+F) agreement signed with Chinese industrial giant SINOMACH.

• “The initiative will create a pipeline of bankable projects capable of accessing the $1 billion Engineering, Procurement and Construction-plus-finance agreement with SINOMACH of China,” he said.

The NSDC boss added that the Council is also engaging Afreximbank and the Nigeria Governors’ Forum to accelerate the development of sugar estates across the country.

Focus on industrialisation and rural development

Bakrin described sugarcane as a strategic crop with multiple industrial applications beyond sugar production.

According to him, sugarcane can also be processed into ethanol, animal feed, and electricity, making it a critical component of Nigeria’s broader bio-industrialisation agenda.

• “We have been blessed with a crop that is one of the most generous God has ever made,” he said.

He further disclosed that the Council would prioritise smallholder farmers and host communities through the Sugarcane Outgrower Development Programme, which requires sugar estates to allocate land for outgrowers and invest in community development initiatives.

Bakrin also called on the Chartered Institute of Directors to support stronger corporate governance standards across sugar estates, mills, and outgrower companies to ensure long-term sustainability.

Get up to speed

The NSDC and the Bank of Industry recently launched the N10 billion Sugar Project Acceleration Fund to support greenfield sugar projects across Nigeria.

The fund provides technical, financial, and advisory support to project developers, helping them prepare viable and investment-ready projects capable of attracting large-scale financing.

The Council has emphasized that the facility is not a grant programme but a structured, performance-driven initiative with clear eligibility requirements and deliverables.

What you should know

The sugar sector initiative complements broader government efforts to strengthen agricultural production and food security.

Recently, the Federal Government approved a N250 billion facility for the Bank of Agriculture (BOA) to provide smallholder farmers with access to credit at single-digit interest rates.

The programme is expected to support agricultural mechanisation, improve productivity, enhance market access, and reduce financing constraints facing farmers across the country.