The Executive Secretary of the National Sugar Development Council (NSDC), Kamar Bakrin, has called on members of the All Farmers Association of Nigeria (AFAN) and other potential investors to seize the immense opportunities currently available in Nigeria’s sugar sector.
Addressing the farmers who paid him a courtesy call in his office, Bakrin called on stakeholders to key into the national push to reduce the country’s dependence on imported raw sugar and its by-products.
According to the NSDC boss, local production of sugar is not only a strategic economic imperative but also a profitable venture with an assured market, attractive returns and strong government backing.
“This is the right time to invest. The Nigerian sugar market is currently valued at over $2 billion, while that of Africa is $7 billion. The continental deficit would rise to 13 metric tonnes (MT) in 2030 due to rising demand and regional supply gaps. The market for sugar by-products is worth $10 billion,” Bakrin said.
He noted that the country’s sugar consumption figures, foreign exchange realities and rising global supply chain uncertainties have made investments in local production more profitable than ever before.
He told his guests that the prevailing macroeconomic conditions have made local production more competitive and importation more challenging.
Bakrin informed the gathering that after a robust land viability assessment, the Council is now in possession of a land bank of 150,000 acres that is suitable for sugarcane cultivation and available to new investors.
The hectares of land, he said, lie in secure regions with a favourable climate, proximity to water sources, and community support.
“It has become very valuable to produce sugar in Nigeria now. It was not always the case, but it is the case now. Four critical factors that have created compelling opportunities to invest in sugarcane growing and processing to meet local and export demand for sugar and associated value-added products include attractive market(s), operational feasibility and sound economics.
“To bridge the production deficit with the commercial outgrower initiative, the Council aims to place at least 50,000 hectares of land under cane and recruit capable commercial farmers with farm sizes ranging from 50 to 200 hectares, particularly within proximity to sugar estates in Numan, Bacita, Sunti and Lafiagi,” he added.
To de-risk investment, Bakrin said, the NSDC has structured a robust support package under the NSMP II.
The incentives include access to the Nigeria Sugar Industry Development Fund (NSIDF), import tariffs on equipment and a five-year tax holiday, 30 per cent tax credit on infrastructure cost, land clearing and lease facilitation with host communities, seedlings and input support, mechanisation and technical expertise from the Nigerian Sugar Institute and guaranteed off-take agreements with sugar processors.
President of the Association, Dr Faruk Rabiu Mudi, accepted the task of mobilising its members to show more interest in the sugar industry, especially the commercial outgrower scheme.
He admitted that the country’s local production numbers compared to consumption are not good enough, even as bridging the gap is not a task for the NSDC alone.
