NSDC targets $1bn investment to cut sugar imports

The National Sugar Development Council (NSDC) is spearheading efforts to attract substantial investment into Nigeria's sugar industry, targeting $1 billion to significantly increase local production and curb reliance on imports. This initiative is structured around a $1 billion engineering, procurement, and construction-plus-finance agreement with China's SINOMACH and the establishment of a N10 billion Sugar Project Acceleration Fund in partnership with the Bank of Industry.

Mr. Kamar Bakrin, Executive Secretary/CEO of the NSDC, outlined the strategy, emphasizing that Nigeria consumes approximately 1.8 million metric tonnes of sugar annually, with imports costing around $1 billion each year. The Nigeria Sugar Master Plan 2.0 is designed not only to boost local production but also to retain more value within the Nigerian economy. Bakrin identified poor execution, rather than a lack of policy, as the primary challenge, stressing the need for "world-class execution" to achieve self-sufficiency.

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We don’t lack policy. What we have struggled with is world-class execution.

Bakrin described NSMP 2.0 as an "acceleration mandate" aimed at rapidly advancing Nigeria towards producing two million metric tonnes of locally sourced sugar. The council's vision extends beyond sugar production to encompass the broader industrial utilization of sugarcane, highlighting its potential for producing ethanol, animal feed, and power, thereby building a comprehensive bio-industrial ecosystem.

To address financing challenges and ensure project viability, the N10 billion Sugar Project Acceleration Fund will support feasibility studies and project preparation, transforming greenfield sites into investment-ready projects. This fund will complement the $1 billion EPC-plus-finance agreement. The NSDC is also rebuilding its Backward Integration Programme around principles of qualification, reward, verification, and enforcement, requiring companies seeking import quotas to demonstrate genuine commitment to local production and utilizing satellite imagery for verification.

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We have been blessed with a crop that is one of the most generous God has ever made. From sugarcane you can get sugar, you can get ethanol, you can get animal feed, you can produce power. Our job is to build a bio-industrial ecosystem around it, this is not just about producing a commodity.