The National Sugar Development Council (NSDC) has secured investment commitments worth more than US$1 billion in a renewed push to increase local sugar production and reduce Nigeria’s dependence on imports.

The proposed investments include a US$1 billion Engineering, Procurement and Construction (EPC)-plus-finance partnership with China’s SINOMACH and a ₦10 billion Sugar Project Acceleration Fund established in collaboration with the Bank of Industry (BoI). The fund is expected to prepare greenfield sugar estates for investment under Nigeria’s Backwards Integration Programme (BIP).

For a country that consumes about 1.8 million metric tonnes of sugar annually, with imports supplying most of that demand, the initiative reflects a renewed effort to strengthen domestic production while reducing pressure on foreign exchange.

Reducing import dependence

Sugar remains an essential raw material for Nigeria’s food and beverage industry, making the country’s dependence on imports both an economic and industrial concern. Heavy import volumes expose manufacturers to exchange rate volatility, higher production costs and supply disruptions.

The NSDC believes increasing local production could help address these challenges while supporting broader economic objectives, including job creation and agricultural industrialisation.

Speaking during a meeting with members of the Abuja Chapter of the Chartered Institute of Directors (CIoD), NSDC Executive Secretary Kamar Bakrin said the Nigeria Sugar Master Plan (NSMP) 2.0 is targeting annual production of approximately two million metric tonnes, a level that would exceed the country’s current consumption.

According to Bakrin, Nigeria’s biggest obstacle is no longer the absence of policy but consistent implementation.

Strengthening Enforcement 

As part of efforts to strengthen the Backwards Integration Programme, the NSDC has rolled out a more rigorous compliance framework anchored on four principles: qualify, reward, verify and enforce.

Under the revised system, companies applying for sugar import quotas must demonstrate genuine investments in local production. Major sugar refiners will also be required to submit audited production targets that correspond with the import quotas they receive.

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The council is further adopting satellite imagery alongside physical inspections to monitor activities on sugar estates, a move intended to reduce reliance on self-reported progress by participating companies. The tighter verification process is expected to improve accountability and ensure that import privileges are linked to measurable investments in Nigeria’s sugar industry.

Building a Broader Sugar Economy 

The council’s plans extend beyond increasing sugar output. The NSDC is positioning sugarcane as the foundation of a wider bio-industrial value chain that includes ethanol production, animal feed and power generation. It is also working with Afreximbank and the Nigeria Governors’ Forum to accelerate the development of sugar estates across participating states.

Under the Sugarcane Outgrower Development Programme (SODP), each estate will be required to allocate land to smallholder farmers while dedicating part of its investment to host community development.

The approach is intended to broaden the economic impact of new sugar projects beyond large-scale commercial production.

The Road to Self-Sufficiency 

While the investment commitments mark a significant step toward Nigeria’s long-standing goal of sugar self-sufficiency, industry observers will be watching whether the announced projects move beyond agreements into operational production.

The proposed partnership with SINOMACH and the Bank of Industry fund still needs to translate into functioning sugar estates capable of increasing domestic output. Likewise, sustained enforcement of backward integration requirements will be critical if Nigeria is to reduce its dependence on imported sugar and achieve the production targets outlined in the Nigeria Sugar Master Plan.

For businesses, the announcement signals renewed government efforts to strengthen local sourcing. However, the ultimate impact on manufacturers, investors and the wider economy will depend on how effectively these commitments are implemented in the years ahead.

Meiza Nigeria