By Felix Khanoba
The National Sugar Development Council (NSDC) has unveiled a 10-year, $7.1 billion investment programme aimed at raising Nigeria’s annual sugar production beyond two million metric tonnes, saving $2.1 billion in foreign exchange annually and creating 110,000 direct and indirect jobs.
The programme, which includes the development of 10 new sugar estates, is designed to boost domestic production, reduce dependence on imported sugar and meet the country’s estimated annual demand of 1.8 million metric tonnes.
Executive Secretary and Chief Executive Officer of the NSDC, Kamar Bakrin, disclosed the plan during a presentation to the newly elected leadership of the Commerce and Industry Correspondents Association of Nigeria (CICAN), which paid him a courtesy visit in Abuja.
Bakrin said the council was pursuing three major interventions to bridge the gap between domestic sugar production and consumption: improving the performance of existing estates, supporting established operators to expand capacity and attracting new investors to develop additional sugar estates.
According to the council, the 10 proposed greenfield projects are expected to produce 835,000 metric tonnes of sugar annually when fully operational, making them a significant component of the country’s drive towards self-sufficiency.
The projects have progressed beyond the conceptual stage, with credible promoters identified for all 10 estates and 143,478 hectares of land secured for development. They are also expected to have a combined sugarcane processing capacity of 55,500 tonnes daily.
The NSDC said independent technical assessments were underway to ensure the projects meet financing requirements and commercial viability standards before implementation.
Under the programme, 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.
Combined with the projected output from the 10 new estates, the three interventions are expected to raise Nigeria’s annual sugar production above two million metric tonnes, exceeding current domestic demand.
Beyond sugar production, the proposed estates are designed as integrated industrial hubs that will also produce ethanol and electricity, providing additional revenue streams and improving their commercial sustainability.
To strengthen the supply of sugarcane to processing mills, the council is also collaborating with farmers to expand cultivation around existing estates.
The initiative targets 11,000 hectares of farmer-grown sugarcane, with 7,000 hectares, representing about 64 per cent of the target, already identified in partnership with stakeholders in Kwara, Niger and Adamawa states.
The scheme is expected to supply existing mills with 880,000 metric tonnes of sugarcane annually, yielding an estimated 88,000 metric tonnes of sugar. It is also intended to strengthen the connection between smallholder farmers and industrial processors while expanding agricultural production.
The $7.1billion programme is expected to be financed through $5bn in debt and $2.1bn in equity investments.
The proposed debt financing comprises approximately $3bn from export credit agencies, $1.75bn from development finance institutions and $250m from domestic development finance institutions.
According to the NSDC boss, the funding will support the construction of new estates, expansion of existing facilities and other investments needed to increase production across the sugar value chain.
However, achieving the projected output will depend on securing the required financing, completing technical assessments and translating investment commitments into fully operational production facilities.
Addressing constraints in the availability of quality sugarcane planting materials and specialised technical expertise, Bakrin said the council had strengthened the Nigeria Sugar Institute (NSI) to support the sector.
The institute is expected to provide training, extension services, improved planting materials, project assessments and technical assistance to sugar estates to enhance productivity and promote sustainable production.
The council, Bakrin, said, is also introducing stricter monitoring of estate performance through physical inspections and satellite technology to track implementation and assess progress.
Beyond the projected foreign exchange savings and job creation, the NSDC boss said successful execution of the programme 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 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 metric tonnes of carbon dioxide equivalent.
The investment drive represents the council’s effort to move Nigeria’s sugar industry from dependence on imports towards increased local production, with the success of the initiative resting on investment mobilisation, improved agricultural productivity and the timely completion of the proposed estates.
