The Federal Government has introduced a 10-year investment initiative worth $7.1bn aimed at increasing Nigeria’s annual sugar production to more than two million metric tonnes, reducing foreign exchange expenditure by $2.1bn annually and generating 110,000 direct and indirect jobs.
The programme, being coordinated by the National Sugar Development Council (NSDC), features 10 proposed new sugar estates projected to produce 835,000 metric tonnes yearly when operating at full capacity. It also provides for increased production by existing operators and improved output from established mills.
According to the NSDC, the initiative is intended to reduce Nigeria’s heavy reliance on imported sugar, as over 97 per cent of the 1.8 million metric tonnes consumed annually is currently refined from imported raw sugar.
Speaking at a press briefing organised with the Commerce and Industry Correspondents Association of Nigeria in Abuja on Sunday, the Executive Secretary and Chief Executive Officer of the council, Kamar Bakrin, said previous efforts to achieve self-sufficiency in sugar production had failed to deliver the desired results.
“We import almost all the sugar we consume. Plants have been launched and relaunched. Targets have come and gone. I did not invite you here to add to that list. The diagnosis is done,” Bakrin said.
He added, “What is different today is that we’re no longer debating why this has been the case, and who is to blame, and what have you.
There are four, and we have answers to each and every one of why we’re where we are.”
The council explained that implementing the investment programme would require $5bn in debt financing and $2.1bn in equity contributions from project promoters and operators.
The proposed debt funding includes $3bn from export credit agencies, $1.75bn from development finance institutions and $250m from domestic development finance institutions.
Bakrin further explained the scope of the initiative, saying, “The NSDC’s $7.1bn, 10-year program is Nigeria’s strategy to raise annual sugar production beyond 2 million MT, above current domestic demand of about 1.8 million MT. Built on three interventions (optimising existing estates, expanding incumbent operators, and recruiting new greenfield investors) across 13 projects, it is projected to save about $2.1bn in foreign exchange annually and create 110,000 direct and indirect jobs.”
He noted that conventional commercial loans were unsuitable for funding large-scale sugar projects because of their high interest rates and relatively short repayment periods.
“Commercial loans cannot finance this sugar sector. That one I think we know that as industry correspondents you know that you cannot build an industry on the back of commercial people at 28 per cent, 15 per cent over five years,” he said.
The NSDC chief disclosed that the council had entered into a $1bn agreement with Chinese firm Sinomach covering engineering, construction and financing. He said funding would be released to the estate once financial close had been achieved.
The council is also collaborating with the Bank of Industry on a N10bn Sugar Projects Acceleration Fund designed to support feasibility studies and prepare projects to attract investors.
According to the NSDC, the 10 proposed greenfield estates already have identified promoters and cover 143,478 hectares of secured land, with planned milling capacity of 55,500 tonnes of sugarcane daily.
The proposed estates are located across eight states: Niger, Kwara, Oyo, Kaduna, Jigawa, Bauchi, Nasarawa and Adamawa.
When fully operational, the estates are expected to produce 835,000 tonnes of sugar annually. They are also designed to generate additional income through ethanol production and electricity generation, diversifying their revenue sources beyond sugar.
The programme further aims to generate 1.22 million tonnes of sugar annually from existing operators and approximately 100,000 tonnes through improved efficiency at established mills.
Together, the three interventions are projected to push Nigeria’s annual sugar production beyond two million tonnes, surpassing current domestic consumption.
To ensure a steady supply of sugarcane to existing mills, the council is targeting 11,000 hectares of farmer-cultivated sugarcane. It disclosed that 7,000 hectares had been identified in partnership with stakeholders in Kwara, Niger and Adamawa states.
The initiative is expected to provide mills with 880,000 tonnes of sugarcane and produce approximately 88,000 tonnes of sugar annually.
Planting is expected to begin on the first 1,320 hectares next year, while arrangements are being developed to guarantee markets for farmers’ produce.
Bakrin said the programme would tackle persistent challenges in the sector, including poor farming methods, insufficient planting materials, weak accountability and projects that had struggled to secure financing.
As part of its efforts to improve sugarcane production, the council has established 222 hectares of seed-cane farms and plans to develop another 122 hectares ahead of the 2026/2027 planting season.
It also disclosed that 95 professionals had undergone training in 2026, with 80 obtaining certification in basic sugarcane agronomy.
Beyond reducing dependence on imported sugar, the NSDC estimates that the programme will support more than one million livelihoods across the value chain, increase the gross domestic product of host communities by over 100 per cent within 10 years and cut annual emissions by approximately two million tonnes of carbon dioxide equivalent.
Bakrin said the council would assess the performance of the estates through on-site inspections and satellite monitoring, stressing that the programme’s success would be determined by verifiable outcomes.
“You will judge us, rightly so, by the results in terms of the hectares, the tons of sugar, how the assets are financed and that is exactly how we expect to be judged,” he said.
Nigeria’s sugar industry has faced longstanding difficulties in developing domestic sugarcane cultivation and processing capacity sufficient to meet local demand.
The proposed investment programme seeks to close this production gap through the establishment of new estates, expansion by existing operators and increased involvement of smallholder farmers.
