Nigeria has secured a $1 billion investment through a strategic partnership with Chinese conglomerate SINOMACH to enhance the nation’s self-sufficiency in sugar production.
The agreement, formalized via a Memorandum of Understanding with the National Sugar Development Council, outlines plans to jointly develop a large-scale sugarcane cultivation and processing project within the country.
This was disclosed by the Executive Secretary of NSDC, Mr. Kamar Bakrin, in an interview with the News Agency of Nigeria on Sunday in Abuja.
Bakrin emphasized that the agreement is set to attract investments of up to $1 billion and serves as one of the early milestones of the Nigeria-China Strategic Partnership led by President Bola Tinubu.
According to the MoU, SINOMACH will develop a sugar processing plant and a sugarcane plantation, initially capable of processing 100,000 metric tonnes annually, with a long-term goal of reaching one million metric tonnes.
Bakrin called the agreement a strategic milestone in Nigeria’s effort to achieve self-sufficiency in sugar production.
“2025 is a pivotal year for Nigeria, and we must make bold moves towards food security and economic self-sufficiency,” he said.
He explained that the project is anticipated to generate thousands of jobs, drive rural infrastructure development, conserve foreign exchange, and serve as a model for Nigeria’s wider industrialization goals.
“This partnership with SINOMACH is unique. It combines engineering, procurement, and construction (EPC) with development financing, an essential model for agro-industrial transformation,” he added.
He stated that the NSDC will offer full support to ensure the smooth launch of the project, including facilitating approvals, land acquisition, and other essential authorizations.
Also speaking, the Vice President of SINOMACH, Mr. Li Yu, commended Nigeria’s implementation of the Nigeria Sugar Master Plan, calling it a “sweet revolution” that supports the country’s goals of food sovereignty and economic dignity.
“We believe this partnership will not only boost Nigeria’s sugar self-sufficiency but also promote rural development, create employment, and enhance agricultural modernization,” Li said.
He also revealed that SINOMACH is exploring RMB-based financing models to fund the project, a strategy aimed at lowering financing costs and accelerating approval processes in China.
Li expressed confidence in the project’s long-term impact, suggesting that the chosen host state could ultimately become the “Sugar Bowl of West Africa.”
The National Sugar Development Council was established by Decree 88 of 1993, now known as Act Cap. No. 78 LFN of 2004, with an amendment in 2015.
Its primary mandate is to develop Nigeria’s sugar industry, with a goal of achieving at least 70% self-sufficiency in sugar production as quickly as possible. The council also aims to position Nigeria as a sugar-exporting nation to enhance foreign exchange earnings.
