The Federal Government of Nigeria, via the National Sugar Development Council, is actively encouraging both local and foreign investors to capitalize on the country’s sugar sector.
With a robust local demand of around two million metric tonnes annually, valued at about $2 billion, the sector presents significant opportunities.
The Executive Secretary of NSDC, Kamar Bakrin,
Highlighted the potential for tapping into the $7 billion African export market during a recent meeting with business editors in Lagos, according to The Punch.
The existence of a large and growing domestic demand makes this business viable and profitable,” Bakrin said.
Bakrin also stated that Nigeria is strategically positioned to meet both local and continental sugar demands, given Africa’s expansive export market valued at $7 billion.
The NSDC boss emphasized that recent currency fluctuations have enhanced the competitiveness of local sugar production, making it a more attractive option.
However, these fluctuations also pose challenges for importers, further underscoring the importance of investing in domestic production.
The economics are compelling with high Net Present Value and Internal Rate of Return at attainable scale, and available financing that matches the business need,” Bakrin noted.
He stressed the Federal Government’s commitment to supporting investments through favourable legislation and a strong incentive framework, which aligns with the NSDC’s Backward Integration Plan.
At the event, Bakrin introduced a community integration model aimed at ensuring sustainability and stability in the sugar industry.
He explained that sugar project operators would be required to allocate a portion of their investments to local development initiatives, including schools, clinics, and roads.
Additionally, the model mandates that a share of managerial job quotas be reserved for community members, fostering local involvement and support.
“This model ensures all stakeholders at the community level benefit, making the industry more secure and sustainable,” he said.
Bakrin also highlighted the diversity of high-value products that the sugar subsector can produce, including ethanol, bioplastics, and packaging materials, which would add further value to the local economy.
The NSDC announced it has declared 2025 as ‘the year of acceleration’ for the sugar sector, committing to raising the necessary funding and supporting the entry of both local and global investors.
