FG unveils $7.1bn sugar plan to cut imports

The Federal Government has unveiled a $7.1bn 10-year investment programme to raise Nigeria’s annual sugar production above two million metric tonnes, save $2.1bn in foreign exchange annually and create 110,000 direct and indirect jobs.

The plan, spearheaded by the National Sugar Development Council, includes 10 new sugar estates expected to produce 835,000 metric tonnes annually at full capacity, alongside the expansion of existing operators and improved output from established mills.

The NSDC said the programme was designed to reduce the country’s dependence on imported sugar, with more than 97 per cent of the 1.8 million metric tonnes consumed annually currently refined from imported raw sugar.

Speaking during a presentation at a press briefing 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 Nigeria had repeatedly announced sugar production targets without achieving self-sufficiency.

“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.”

According to the council, the programme will require $5bn in debt financing and $2.1bn in equity contributions from project promoters and operators.

The proposed debt financing comprises $3bn from export credit agencies, $1.75bn from development finance institutions and $250m from local development finance institutions.

Bakrin added, “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 said conventional commercial loans were unsuitable for financing large-scale sugar projects because of their high interest rates and 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.

He disclosed that the council had signed a $1bn agreement with Chinese group Sinomach for engineering, construction and financing, with funding expected to flow to the estate once financial close was achieved.

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The NSDC is also working with the Bank of Industry on a N10bn Sugar Projects Acceleration Fund to finance feasibility studies and prepare projects to attract investment.

The council said the 10 proposed greenfield estates had identified promoters and covered 143,478 hectares of secured land, with planned milling capacity of 55,500 tonnes of cane per day. The projects are spread across eight states, including Niger, Kwara, Oyo, Kaduna, Jigawa, Bauchi, Nasarawa and Adamawa.

At full capacity, the estates are expected to produce 835,000 tonnes of sugar annually. Each is designed to generate additional revenue from ethanol and electricity, reducing dependence on sugar sales alone.

The programme also targets annual production of 1.22 million tonnes from existing operators and about 100,000 tonnes from improved performance at existing mills. Combined, the three interventions are projected to raise annual output above two million tonnes, exceeding current domestic demand.

To increase the supply of sugarcane to existing mills, the council is targeting 11,000 hectares of farmer-grown cane. It said 7,000 hectares had been identified with partners in Kwara, Niger and Adamawa states.

The initiative is expected to supply 880,000 tonnes of sugarcane to mills and generate about 88,000 tonnes of sugar annually. The first 1,320 hectares are expected to be planted next year, with agreements being developed to ensure farmers have buyers for their harvests.

Bakrin said the programme would also address longstanding challenges involving poor agricultural practices, inadequate planting materials, weak accountability and projects that failed to attract financing.

The council has established 222 hectares of seed-cane farms and plans to develop an additional 122 hectares to support the 2026/2027 planting season. It also said 95 professionals had received training in 2026, including 80 certified in basic sugarcane agronomy.

Beyond reducing sugar imports, the NSDC projects that the programme will affect more than one million livelihoods across the value chain, increase the gross domestic product of host communities by more than 100 per cent over 10 years and reduce annual emissions by about two million tonnes of carbon dioxide equivalent.

Bakrin said the council would monitor estate performance through physical inspections and satellite technology, insisting that the programme would be judged by measurable results.

“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 long struggled to develop domestic sugarcane cultivation and processing on a scale sufficient to meet local demand. The proposed investment programme seeks to address that gap by combining new estates, expanded production by existing operators and greater participation by smallholder farmers.