The federal government is urging both local and international investors to explore opportunities in Nigeria’s sugar market, which is valued at approximately $2 billion.
Kamar Bakrin, the Executive Secretary and CEO of the National Sugar Development Council (NSDC), emphasized that Nigeria’s annual sugar consumption ranges from 1.4 to 1.6 million metric tonnes.
Bakrin stated that the NSDC is launching this investment initiative to significantly decrease Nigeria’s reliance on Brazil, which currently supplies about 96% of the country’s sugar imports.
He highlighted that the Nigerian sugar market, with its estimated $2 billion valuation, offers a lucrative opportunity for investors due to the increasing demand for domestic production.
Furthermore, he noted that local production is particularly beneficial in light of currency fluctuations that make imports more expensive, thus making domestic production a more economically viable option.
“The financial prospects are strong, with high Net Present Value and Internal Rate of Return achievable at scale, along with financing options that meet business requirements,” Bakrin remarked.
As part of its Backward Integration Plan (BIP), the federal government is actively formulating policies and incentives to bolster local production and lessen dependence on imported sugar.
The NSDC has introduced a community integration model that encourages investment in local development. Under this model, sugar project operators are required to invest in community projects such as schools, clinics, and road construction, while also ensuring that local residents occupy managerial positions.
“This approach guarantees that all community stakeholders benefit, enhancing the industry’s security and sustainability,” Bakrin added.
The NSDC aims to tap into the $7 billion African sugar market while enhancing the Nigerian economy through high-value byproducts like ethanol, bioplastics, and packaging materials.
In preparation for growth, the NSDC has designated 2025 as “the year of acceleration,” pledging to secure the necessary funding to assist both local and global investors in Nigeria’s sugar sector.
In 2022, the federal government extended the National Sugar Master Plan (NSMP) for an additional ten years, with the goal of achieving an annual production of 1.7 to 1.8 million metric tonnes of sugar by 2033, thereby eliminating the $350 million spent annually on imports.
By 2033, the NSMP is expected to create 110,000 jobs, representing a significant advancement toward self-sufficiency and economic growth in Nigeria’s sugar industry.
