The National Sugar Development Council and the Bank of Industry have established a N10 billion Sugar Project Acceleration Fund to support the development of greenfield sugar projects across Nigeria.

The fund aims to provide financing and project development support to viable greenfield initiatives.

Its primary goal is to accelerate the growth of a sustainable and competitive sugar industry in the country.

To enhance stakeholders’ understanding of the initiative, the council organised an interactive session.

During the session, officials from NSDC and BOI briefed potential beneficiaries on the fund’s structure, requirements, and opportunities.

Speaking at the event, the Executive Secretary/Chief Executive Officer of NSDC, Mr. Kamar Bakrin, said access to capital alone does not guarantee the success of sugar production projects.

According to him, “Here is a reality that every serious project promoter knows: Capital availability, on its own, will not result in sugar production.”

He noted that development finance institutions and impact investors are increasingly willing to fund agro-industrial projects in Africa.

However, many proposals fail to meet the standards required to secure financing.

“The constraint, far more often than people appreciate, is not the availability of money. It is the availability of projects that are structured, documented, and de-risked to the standard required to receive financing,” he said.

Bakrin explained that a bankable sugar project must be backed by a credible feasibility study.

The study should cover agronomy, water resources, infrastructure, and environmental risks.

It must also include a strong financial model, clear land tenure arrangement, an outgrower development plan, and a credible implementation strategy.

He added that SPAF was created to bridge the gap between early-stage project concepts and bankable investments.

He stressed that the facility is not a grant but a structured initiative to develop investor-ready sugar projects.

The BOI representative, Ms. Hadiza Shuaib, said the bank will serve as fund manager.

BOI will handle credit appraisal, risk management, loan disbursement, and monitoring.

She added that only businesses engaged in sugar or related activities will qualify for the facility.