The National Sugar Development Council (NSDC) has launched a revised $7.1 billion, 10-year sugar development programme aimed at bridging Nigeria's domestic production gap and reducing dependence on imported sugar. The programme is expected to cut annual Foreign Exchange (FX) expenditure by about $2.1 billion and create 110,000 jobs. According to NSDC Executive Secretary, Kamar Bakrin, the initiative targets a market with annual domestic demand of 1.8 million tonnes.
The programme involves the development of 10 proposed greenfield estates, expected to produce 835,000 metric tonnes of sugar annually at full capacity. These estates are central to the plan to lift national output beyond two million tonnes. Bakrin stated that the council is moving from policy commitments towards measurable implementation, with estate performance to be monitored through physical inspections and satellite technology.
The NSDC has outlined a three-pronged strategy built around improving existing estates, expanding established operators, and attracting new investors into greenfield projects. The programme's success will depend on translating investment commitments into functioning factories, reliable cane supplies, and commercially viable operations. According to Bakrin, the council has identified promoters for all 10 proposed estates and secured 143,478 hectares of land.
The 10 greenfield projects have progressed beyond the conceptual stage, with combined milling capacity of 55,500 tonnes of cane daily. Independent technical reviews are underway to ensure they meet bankability requirements. The council expects the 10 estates to contribute 835,000 tonnes of sugar annually when fully operational, complementing production from existing estates and expansion by incumbent operators.
Credible Nigerian business groups and international companies have expressed interest in investing in the programme. Some prospective investors have acquired land and commenced feasibility studies, with the council hopeful that groundbreaking on some projects could begin before the end of the year. The projects are distributed across eight states, while 14 states have climatic conditions potentially suitable for commercial sugarcane cultivation.
Adequate water supply and sufficient rain-free days are critical to commercial production, particularly for the development of sucrose in sugarcane. The 10-year programme requires $7.1 billion in investment, comprising $5 billion in debt financing and $2.1 billion in equity. The proposed debt structure includes approximately $3 billion from export credit agencies, $1.75 billion from development finance institutions, and other sources.
The programme aims to achieve self-sufficiency in sugar production, cut sugar imports, conserve foreign exchange, and create jobs. With the implementation of the programme, Nigeria can reduce its reliance on imported sugar and become a major player in the global sugar industry. The success of the programme will depend on the effective implementation of the projects and the collaboration of all stakeholders involved.
Key points
- The programme targets a market with annual domestic demand of 1.8 million tonnes.
- The 10 greenfield estates are expected to produce 835,000 metric tonnes of sugar annually at full capacity.
- The programme requires $7.1 billion in investment, comprising $5 billion in debt financing and $2.1 billion in equity.
