By Felix Khanoba
In a major boost to Nigeria’s sugar industry, the National Sugar Development Council (NSDC) has signed a landmark Memorandum of Understanding (MoU) with Chinese industrial giant SINOMACH for the establishment of a large-scale sugarcane cultivation and processing project.
The MoU, which emerged from the Nigeria-China Strategic Partnership initiated by President Bola Tinubu, is poised to channel up to $1 billion into the country’s sugar value chain.
Under the terms of the MoU, SINOMACH will commence with the development of a sugar production facility and an accompanying plantation, initially targeting an annual output of 100,000 metric tonnes while the NSDC will play a facilitative role, helping secure the regulatory and governmental approvals needed to execute the project.
Once operational, the venture is expected to significantly scale up Nigeria’s local sugar production, which could ultimately reach one million metric tonnes annually under the full scope of the collaboration.
The Chinese conglomerate will bring its technical expertise and capacity to the project, not only handling Engineering, Procurement, and Construction (EPC), but also fully financing the initiative—an approach considered rare and highly advantageous for Nigeria’s agro-industrial development.
Speaking at the MoU signing ceremony in Abuja, the Executive Secretary/CEO of NSDC, Mr. Kamar Bakrin, reiterated that 2025 represents a pivotal year for accelerated development in Nigeria.
“It is a critical period during which we expect to make significant strides in our national journey towards economic self-sufficiency and food security, especially given the fiscal pressure that Nigeria faces.
“It goes without saying that a robust sugar industry will deliver several benefits to Nigeria. These include the creation of thousands of sustainable jobs across the value chain. Sugar, by its very nature, leads to extensive rural infrastructure development. For Nigeria, it will also result in substantial foreign exchange savings, as it will substitute imports, which currently account for the bulk of the country’s sugar consumption.
“We envision a sugar sector, when fully developed, that will serve as a blueprint for Nigeria’s broader industrialisation strategy. And, of course, China, being the world’s leader in industrialisation, can easily relate to this.
“We believe that the sugar industry can serve as a model in this regard, as it gives us an opportunity to adopt a creative and transformative approach to achieving scale and speed—critical elements for Nigeria’s development. Specific elements that we believe, if successfully implemented in the sugar sector, can be replicated in other areas of Nigeria’s industrialisation include a strategic approach to sector development, the establishment of enabling policy frameworks, effective aggregation of critical production inputs, acquisition of technical skills and competencies, and innovative financing solutions.
“The signing of this MoU marks the beginning of what we anticipate will evolve into a long-term relationship capable of ultimately delivering as much as one million metric tonnes of locally produced sugar, thereby strengthening our domestic production capacity and reducing import dependence. It is indeed a unique model, as it combines both EPC and development financing—an essential requirement for agro-industrial development in the country,” Mr. Bakrin said.
On his part, the Vice President of SINOMACH, Li Xiao Yu, acknowledged that, as Africa’s largest economy, the country’s vigorous implementation of the Nigeria Sugar Master Plan (NSMP) with the goal of achieving self-sufficiency in sugar production, is laudable.
“We deeply admire this vision—it is not only an industrial policy but also a sweet revolution tied to food sovereignty and economic dignity. We firmly believe that, through joint efforts, the success of the plantation and sugar mill project will enhance Nigeria’s sugar self-sufficiency, spur economic development in surrounding areas, create substantial employment, modernise the agricultural value chain, and generate long-term and sustainable social benefits.
“We view our partnership with NSDC not merely as a commercial endeavour, but as a concrete step toward implementing the shared vision of our two Heads of State to enhance agricultural cooperation and promote common development,” he said.
He continued: “We are also actively exploring the implementation of RMB-based financing models to support our collaboration—contributing to the internationalisation of the Chinese currency, diversifying Nigeria’s financing channels, reducing overall costs, and expediting project approvals on the Chinese side. This will ensure stable and efficient funding support.
He further expressed hope that the state eventually selected to host the project in Nigeria could be transformed into the “Sugar Bowl of West Africa.”
