Nigeria’s $2 Billion Sugar Market Beckons Investors, Says NSDC Boss

Investors are being urged to seize significant opportunities within Nigeria’s burgeoning sugar sector, which currently boasts a market value exceeding $2 billion. Mr. Kamar Bakrin, the Executive Secretary of the National Sugar Development Council (NSDC), made this compelling appeal on Sunday, August 3, 2025, stressing the strategic importance and profitability of local sugar production.

Speaking during a courtesy visit by the President of the All Farmers’ Association of Nigeria (AFAN), Dr. Farouk Rabiu Mudi, Bakrin highlighted Nigeria’s immense potential to curb its reliance on imported raw sugar and its by-products. He emphasized that the time is ripe for investment, not only due to the substantial domestic demand but also because of the broader African sugar market, valued at $7 billion, which faces a projected deficit of 13 million metric tonnes by 2030. Furthermore, the market for sugar by-products, such as ethanol, animal feed, and bioelectricity, presents an additional $10 billion opportunity.

“This is the right time to invest. It has become very, very valuable to produce sugar in Nigeria now,” Bakrin asserted, citing factors like the country’s sugar consumption patterns, current foreign exchange realities, and global supply chain uncertainties that have made local production significantly more profitable than ever before. He added that the African Continental Free Trade Area (AfCFTA) offers Nigerian producers a unique advantage to penetrate regional markets with minimal trade barriers, positioning Nigeria to become Africa’s cost-leader in sugar production.

To de-risk investment and provide a conducive environment, the NSDC boss unveiled a robust support package under the National Sugar Master Plan Phase II (NSMP II). The council has identified a vast land bank of 150,000 hectares, deemed suitable for sugarcane cultivation in secure regions with favorable climates and access to water, all readily available for new investors.

Incentives include access to the Nigeria Sugar Industry Development Fund (NSIDF), import tariff waivers on equipment, a five-year tax holiday, and a 30% tax credit on infrastructure costs. The NSDC also offers facilitation for land clearing and leases with host communities, alongside support for seedlings, inputs, mechanization, and technical expertise.

Bakrin elaborated on plans to bring at least 50,000 hectares under sugarcane cultivation through a commercial outgrower scheme, targeting qualified commercial farmers with medium-sized farms in proximity to established sugar estates like Numan, Bacita, Sunti, and Lafiagi.

“We are not just inviting investors; we are providing the tools, capital, and partnerships to ensure they succeed,” Bakrin emphasized, calling on AFAN and other private sector players to join the national imperative of reshaping Nigeria’s sugar economy towards self-sufficiency. Dr. Farouk Rabiu Mudi, responding to the call, pledged AFAN’s commitment to mobilizing its members to actively participate in the sugar industry, particularly through the commercial outgrower scheme.