Nigeria Targets $7.1bn Sugar Investment To Cut Import Dependence

Nigeria is targeting sugar self-sufficiency through a $7.1 billion investment programme over 10 years, with projected annual foreign exchange savings of $4.1 billion and about 110,000 direct and indirect jobs. The plan aims to raise domestic production from about 27,000 metric tonnes to more than two million tonnes annually.

The country consumes approximately 1.8 million tonnes of sugar a year, with more than 97 per cent of domestic consumption refined from imported raw sugar, underscoring the scale of its dependence on foreign supplies.

The executive secretary and chief executive officer of the National Sugar Development Council (NSDC), Kamar Bakrin, disclosed the plan in Abuja, saying it was also expected to support more than one million livelihoods, stimulate economic activity in host communities and reduce greenhouse gas emissions by about two million tonnes annually when fully implemented.

He said the Council was pursuing three major strategies to boost production. The first is the Sugarcane Outgrower Development Programme, which targets 11,000 hectares of farmer-grown sugarcane and annual production of about 880,000 tonnes. About 7,000 hectares have been identified in Kwara, Niger and other states, while the first 1,220 hectares are expected to be planted next year. Agreements with sugar mills are also being developed to guarantee markets for farmers’ produce and reduce investment risks. The council expects the initiative to raise domestic sugar production to about 100,000 metric tonnes.

The second strategy involves expanding three existing operators under the Nigeria Sugar Master Plan’s Backward Integration Programme. Bakrin said they were targeting combined annual production of about 1.2 million metric tonnes, with approximately 85 per cent of the required land secured. The expansion includes about 107,000 hectares of sugarcane plantations and increased factory processing capacity, with progress monitored through field assessments and satellite verification.

The third strategy is to attract investors for 10 new sugar projects across eight states. The proposed projects cover more than 140,000 hectares and are expected to produce about 335,000 metric tonnes of sugar annually. Bakrin said the factories would also be designed to generate revenue from ethanol and electricity. He added that the council had validated about 1.2 million hectares of suitable land, compared with an estimated 250,000 hectares needed to achieve self-sufficiency.

Bakrin said the $7.1 billion programme would be financed mainly through long-term debt and development finance, arguing that conventional commercial loans were unsuitable for large-scale sugar projects because of their lengthy development periods and high borrowing costs.

He disclosed that the council had signed a $1 billion agreement with a Chinese group, SINOMACH covering engineering, procurement, construction and financing. The NSDC is also working with the Bank of Industry (BoI) on a ₦10 billion project acceleration fund to finance feasibility studies and early-stage development.

The NSDC chief explained that the Council was addressing shortages of certified sugarcane planting materials and technical skills by establishing 222 hectares of seed farms in Kwara, Kano and Oyo states, with an additional 122 hectares planned.

According to him, the farms are expected to supply more than 18,000 tonnes of certified sugarcane planting materials for the 2026/2027 planting season. He added that the Council was adopting bud-chip technology to reduce the quantity of planting materials and the land required for sugarcane propagation.

On manpower development, he said 95 professionals had been trained in 2026, including 80 certified in basic sugarcane agronomy and 15 graduate trainees exposed to field operations.

He said the Council was also pursuing automation, digitisation, performance management and Lean Six Sigma processes to improve efficiency and accountability, while strengthening monitoring to ensure operators met their investment commitments.

Bakrin said the programme’s success would be measured by increases in domestic sugar production, sustained investment and reduced dependence on imports. He acknowledged the support of President Bola Tinubu, the Federal Ministry of Industry, Trade and Investment, state governments, industry operators, host communities and farmers.