Nigeria Aims for $7.1 Billion Investment in Sugar Industry Over 10 Years

The Federal Government of Nigeria is planning to attract $7.1 billion in investments in the sugar industry over the next 10 years. This initiative aims to increase local sugar production to more than two million metric tonnes each year, create 110,000 jobs, and save $2.1 billion in foreign currency annually.

The National Sugar Development Council (NSDC) is coordinating this program. Executive Secretary Kamar Bakrin announced the plan in Abuja, highlighting its goal to reduce Nigeria’s reliance on imported raw sugar. This will be achieved by boosting sugarcane farming, processing capabilities, and private sector investments.

As part of the initiative, the NSDC proposes to establish 10 integrated sugar estates in several states, including Niger, Kwara, Oyo, Kaduna, Jigawa, Bauchi, Nasarawa, and Adamawa. These estates will span 143,478 hectares and have a total milling capacity of 55,500 metric tonnes of sugarcane each day.

The proposed estates are expected to produce around 835,000 metric tonnes of sugar annually. Additionally, existing sugar producers are anticipated to increase their output by another 1.22 million tonnes. The projects will also support ethanol production and electricity generation, creating further opportunities in agro-processing.

To fund this ambitious program, the NSDC is looking for $5 billion in long-term loans and $2.1 billion in investments from private investors. The funding strategy will involve export credit agencies, development finance institutions, and local banks. The NSDC has also signed a $1 billion agreement with Sinomach, a Chinese engineering firm, although the financing details are still being finalized. Furthermore, it is working with the Bank of Industry on a proposed N10 billion fund to support project feasibility studies and investment preparations.