By David Akinmola
Nigeria requires an estimated $7.1 billion investment over the next 10 years to achieve self-sufficiency in sugar production, as the Federal Government seeks long-term financing to expand existing estates, develop new projects and reduce dependence on imports.
The Executive Secretary of the National Sugar Development Council (NSDC), Kamar Bakrin, disclosed this at a news conference organised by the Commerce and Industry Correspondents Association of Nigeria in Abuja.
He said the proposed investment would cover existing sugar estates, 10 new projects and supporting infrastructure required to raise domestic production.
According to Bakrin, about $5 billion of the funding is expected from long-term debt facilities and development capital, while project promoters and operators are expected to contribute the remaining $2.1 billion.
The proposed financing includes $3 billion from export credit agencies, $1.75 billion from other development finance institutions and $250 million from local development finance sources.
Bakrin said conventional commercial loans were unsuitable for the sector because sugar production requires substantial upfront investment and long development periods.
“Commercial loans cannot finance this sugar sector. That one, I think we know. Also, loans attracting interest rates of between 15 and 28 per cent over five years cannot support the industry’s financing requirements,” he said.
He also disclosed that the council had signed a $1 billion agreement with Chinese firm Sinomach covering engineering, procurement, construction and financing for sugar estates. The funding is expected to be deployed once the projects reach financial close.
To improve access to project financing, the NSDC is also working with the Bank of Industry on a ₦10 billion Sugar Project Acceleration Fund designed to support feasibility studies and help prospective projects become bankable.
Nigeria’s drive for sugar self-sufficiency is anchored on the Nigeria Sugar Master Plan, which seeks to expand domestic production, attract investment and reduce reliance on imported sugar. The plan was extended to 2033.
Data published by the NSDC puts annual domestic sugar consumption at about 1.8 million metric tonnes, while local production averages approximately 35,000 metric tonnes, representing less than three per cent of demand. This leaves the country heavily reliant on imports to meet the needs of households and industries.
Beyond meeting domestic demand, increased sugar production could support job creation, agricultural development and the growth of related industries, including ethanol, animal feed and power generation.
However, achieving the target will depend on mobilising long-term capital, developing supporting infrastructure and ensuring that proposed investments translate into productive estates and higher domestic output.
