The National Sugar Development Council (NSDC) says Nigeria needs $7.1 billion in investment over the next decade to achieve self sufficiency in sugar production, reduce import dependence and conserve foreign exchange.
The council’s Executive Secretary, Kamar Bakrin, disclosed the investment requirement at a news conference organised by the Commerce and Industry Correspondents Association of Nigeria in Abuja. He said the programme would support existing sugar estates, expand established operators and develop 10 proposed new projects.
About $5 billion of the funding is expected from long term debt and development finance, while project promoters and operators would provide the remaining $2.1 billion in equity. The proposed financing includes $3 billion from export credit agencies, $1.75 billion from other development finance institutions and $250 million from local development finance sources.
Bakrin said conventional commercial loans were unsuitable for the sector because sugar projects require substantial upfront capital and take years to become fully operational.
The council has signed a $1 billion agreement with Chinese group SINOMACH covering engineering, procurement, construction and financing. It is also working with the Bank of Industry on a ₦10 billion Sugar Project Acceleration Fund to support feasibility studies and prepare proposed projects for financing.
The 10 year programme aims to raise annual domestic sugar production above two million metric tonnes, compared with estimated consumption of about 1.8 million tonnes. More than 97 per cent of the sugar consumed in Nigeria is currently refined from imported raw sugar, according to the council.
The 10 proposed greenfield estates are expected to contribute about 835,000 tonnes of sugar annually at full capacity. The council also projects that existing estates and established operators will contribute approximately 100,000 tonnes and 1.22 million tonnes respectively.
The proposed estates cover eight states, with promoters identified and 143,478 hectares of land secured. The projects are undergoing technical reviews to assess their readiness for financing and implementation.
The council is also targeting 11,000 hectares of farmer grown sugarcane around existing mills to improve access to raw materials. About 7,000 hectares have been identified with partners in Kwara, Niger and Adamawa states. The initiative is expected to supply mills with 880,000 tonnes of sugarcane and generate approximately 88,000 tonnes of sugar annually.
The NSDC projects that successful implementation could save about $2.1 billion in foreign exchange annually and create 110,000 direct and indirect jobs. The programme is also expected to support more than one million livelihoods across the sugar value chain. These figures are projections and depend on the projects securing financing, completing construction and reaching planned production levels.
The council is promoting integrated sugar estates that can produce ethanol and electricity alongside sugar, providing additional revenue streams and potentially improving project viability.
Nigeria’s sugar industry has struggled to achieve self sufficiency despite years of government backed investment and backward integration policies. The latest plan seeks to address financing constraints, limited local sugarcane supplies and gaps in production capacity.
Its success will depend on turning proposed investments into operational estates and processing facilities, securing reliable sugarcane supplies and ensuring that domestic production can compete sustainably with imports.
Leave a comment