The National Sugar Development Council (NSDC) in Nigeria has launched a 10-year, $7.1 billion investment programme aimed at significantly increasing the country's annual sugar production. The initiative targets an output of over two million metric tonnes, a substantial rise from current levels. This move is designed to reduce Nigeria's dependence on imported sugar and meet the estimated annual demand of 1.8 million metric tonnes. The programme also aims to create 110,000 direct and indirect jobs and save $2.1 billion in foreign exchange annually.
The investment plan involves the development of 10 new sugar estates across Nigeria. These greenfield projects are expected to produce 835,000 metric tonnes of sugar annually when fully operational. They will have a combined sugarcane processing capacity of 55,500 tonnes daily. The council has identified credible promoters for all 10 estates and secured 143,478 hectares of land for development. Independent technical assessments are currently underway to ensure these projects meet financing requirements and commercial viability standards.
In addition to the new estates, the NSDC is focusing on improving the performance of existing sugar estates and supporting established operators to expand their capacity. Existing estates are projected to contribute about 100,000 metric tonnes of sugar annually, while established operators are expected to produce approximately 1.22 million metric tonnes. The council's strategy involves a multi-faceted approach to bridge the gap between domestic sugar production and consumption.
The programme also includes collaboration with farmers to expand sugarcane cultivation around existing estates. The initiative targets 11,000 hectares of farmer-grown sugarcane, with 7,000 hectares already identified in partnership with stakeholders in Kwara, Niger, and Adamawa states. This scheme is expected to supply existing mills with 880,000 metric tonnes of sugarcane annually, yielding an estimated 88,000 metric tonnes of sugar.
The $7.1 billion programme is expected to be financed through a combination of debt and equity investments. The proposed debt financing comprises approximately $3 billion from export credit agencies, $1.75 billion from development finance institutions, and $250 million from domestic development finance institutions. The council's Executive Secretary, Kamar Bakrin, stated that the funding will support the construction of new estates, expansion of existing facilities, and other investments needed to increase production.
The successful execution of this programme is expected to have far-reaching benefits beyond sugar production. It could improve economic activities in host communities and deliver environmental benefits. The council projects that domestic sugar and ethanol production could create 110,000 direct and indirect jobs, support more than one million livelihoods, increase the gross domestic product of host communities by over 100 per cent, and reduce annual emissions by about two million metric tonnes of carbon dioxide equivalent.
To ensure the programme's success, the NSDC is introducing stricter monitoring of estate performance through physical inspections and satellite technology. The council has also strengthened the Nigeria Sugar Institute (NSI) to support the sector by providing training, extension services, improved planting materials, and technical assistance to sugar estates. The institute will play a crucial role in enhancing productivity and promoting sustainable production practices.
Key points
- The programme aims to save $2.1 billion in foreign exchange annually.
- The initiative targets an output of over two million metric tonnes of sugar per year.
- The programme is expected to create 110,000 direct and indirect jobs.
