The National Sugar Development Council (NSDC) has introduced a 10 year investment programme worth $7.1bn to raise Nigeria’s annual sugar output above two million metric tonnes, save an estimated $2.1bn in foreign exchange yearly and generate 110,000 direct and indirect jobs.
The initiative includes the development of 10 new greenfield sugar estates and is expected to attract $2.1bn in equity funding and $5bn in debt financing. It forms part of the council’s strategy to reduce reliance on imported sugar and move the country towards self sufficiency.
The proposed greenfield estates are projected to produce 835,000 metric tonnes of sugar annually when operating at full capacity.
Their output would contribute significantly to meeting Nigeria’s estimated domestic demand of 1.8 million metric tonnes per year.
The Executive Secretary and Chief Executive Officer of the NSDC, Kamar Bakrin, disclosed the plan during a presentation to the newly elected leadership of the Commerce and Industry Correspondents Association of Nigeria (CICAN), which visited him.
Bakrin explained that the programme would address the gap between local production and consumption through three key strategies: improving the performance of existing sugar estates, supporting current operators to expand production and attracting new investors to establish additional estates.
According to the council, the combined contribution of these interventions is expected to push annual domestic production beyond two million metric tonnes, reduce dependence on imported sugar and conserve foreign exchange.
Bakrin said the 10 proposed greenfield projects had advanced beyond the planning stage, with credible promoters identified for each project and 143,478 hectares of land secured for development.
The projects are expected to have a combined processing capacity of 55,500 tonnes of sugarcane daily. Independent technical assessments are also being conducted to ensure the proposed investments meet financing and commercial viability requirements.
He noted that each estate would operate as an integrated industrial hub, producing sugar alongside ethanol and electricity. The approach is intended to diversify revenue sources and strengthen the commercial sustainability of the projects.
Under the programme, existing operators are expected to contribute about 100,000 metric tonnes of sugar annually, while established estates are projected to produce approximately 1.22 million metric tonnes.
Combined with output from the new greenfield projects, the three interventions are expected to deliver more than two million metric tonnes annually at full capacity.
The council is also working to expand sugarcane production by supporting farmers supplying existing mills.
Bakrin said the initiative targets 11,000 hectares of farmer-grown sugarcane, with 7,000 hectares, representing about 64 per cent of the target, already identified in collaboration with partners in Kwara, Niger and Adamawa states.
The scheme is expected to provide existing mills with 880,000 metric tonnes of sugarcane annually, producing an estimated 88,000 metric tonnes of sugar. It is also designed to strengthen local agricultural production and improve connections between smallholder farmers and industrial processors.
On funding, Bakrin said the $7.1bn programme would be financed through $5bn in debt and $2.1bn in equity investments.
The proposed debt package comprises approximately $3bn from export credit agencies, $1.75bn from development finance institutions and $250m from domestic development finance institutions.
The funding is expected to support new estate construction, the expansion of existing facilities and other investments required to increase production across the sugar value chain.
However, implementation will depend on securing the projected financing, completing technical assessments and converting investment commitments into operational capacity.
To tackle shortages of quality sugarcane planting materials and specialised expertise, Bakrin said the council had strengthened the Nigeria Sugar Institute (NSI).
The institute is expected to provide training, extension services, planting materials, project assessments and technical assistance to sugar estates to improve productivity and support sustainable production.
The NSDC is also introducing closer oversight of estate performance through physical inspections and satellite technology to monitor project implementation and measure progress.
The council said successful execution of the programme would deliver economic and environmental benefits beyond increased sugar production, with domestic sugar and ethanol output projected to save about $2.1bn in foreign exchange annually and create 110,000 direct and indirect jobs across the value chain.
