Nigeria is set to expand its domestic sugar industry under a proposed $7.1 billion investment programme designed to increase annual production beyond two million metric tonnes, reduce import dependence and generate thousands of jobs.
The 10-year initiative, announced by the National Sugar Development Council (NSDC), includes plans to establish 10 new sugar estates and expand the capacity of existing producers.
The council said the programme could save Nigeria approximately $2.1 billion in foreign exchange annually while creating 110,000 direct and indirect jobs.
NSDC Executive Secretary and Chief Executive Officer, Kamar Bakrin, announced the initiative during a meeting with the newly elected leadership of the Commerce and Industry Correspondents Association of Nigeria in Abuja.
Bakrin explained that the council was implementing a three-pronged strategy to close the gap between domestic sugar production and national consumption.
The approach involves improving the performance of existing estates, helping established operators increase output and attracting investors to develop additional production facilities.
According to the council, the 10 proposed estates are expected to contribute 835,000 metric tonnes of sugar annually when fully operational. Promoters have reportedly been identified for all the projects, while 143,478 hectares of land have been secured for development.
The proposed facilities are expected to process a combined 55,500 tonnes of sugarcane daily. The council said technical assessments were ongoing to determine their commercial viability and financing requirements.
Existing estates are projected to contribute about 100,000 metric tonnes annually, while established operators are expected to produce approximately 1.22 million metric tonnes.
Together, the three production channels are expected to push Nigeria’s annual sugar output above the country’s estimated demand of 1.8 million metric tonnes.
The programme also seeks to develop integrated industrial facilities capable of producing ethanol and electricity alongside sugar, providing additional income opportunities and supporting long-term operations.
As part of efforts to strengthen raw material supplies, the NSDC is working with farmers to cultivate sugarcane around existing processing plants.
The initiative targets 11,000 hectares of farmer-grown sugarcane, with 7,000 hectares already identified in collaboration with stakeholders in Kwara, Niger and Adamawa states.
The council expects the scheme to supply mills with 880,000 metric tonnes of sugarcane annually, yielding an estimated 88,000 metric tonnes of sugar.
The investment programme is expected to be funded through $5 billion in debt financing and $2.1 billion in equity. Proposed lenders include export credit agencies and development finance institutions.
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Bakrin said the funding would support new estate construction, expansion of existing facilities and investments across the sugar production value chain.
To address technical challenges, the council has strengthened the Nigeria Sugar Institute, which is expected to provide training, extension services, improved planting materials and technical support to producers.
The NSDC is also introducing physical inspections and satellite monitoring to assess project implementation and track estate performance.
Beyond production and foreign exchange savings, the council projects that the programme could 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 reduce annual emissions by approximately two million metric tonnes of carbon dioxide equivalent.
However, the targets remain dependent on securing the required investments, completing technical assessments and bringing the proposed facilities into operation.
The initiative forms part of broader efforts to strengthen Nigeria’s agricultural and industrial capacity while reducing reliance on imported sugar.
