Nigeria plans to raise annual sugar production beyond two million metric tonnes within the next decade under a revised $7.1bn industry master plan aimed at cutting imports and saving about $2.1bn in foreign exchange annually.
The National Sugar Development Council’s Executive Secretary and Chief Executive Officer, Kamar Bakrin, announced the plan at a press conference with members of the Commerce and Industry Correspondents Association of Nigeria (CICAN) in Abuja.
Bakrin said the programme was also expected to create 110,000 direct and indirect jobs and support more than one million livelihoods.
Nigeria consumes about 1.8 million metric tonnes of sugar annually, but local mills produced only about 27,000 tonnes last year. More than 97 per cent of the country’s refined sugar is produced from imported raw sugar.
The council plans to close the production gap by improving existing sugar estates and mills, expanding operations by current industry players and developing 10 new projects.
Existing operators are projected to produce about 1.22 million tonnes annually, while the proposed new projects are expected to contribute approximately 835,000 tonnes.
The 10 greenfield projects are planned across Niger, Kwara, Oyo, Kaduna, Jigawa, Bauchi, Nasarawa and Adamawa states. The council said promoters had been identified for all the projects, with 143,478 hectares of land secured and a combined daily sugarcane-crushing capacity of 55,500 tonnes.
Each proposed estate is designed to produce sugar, ethanol and electricity, while technical reviews are under way to assess commercial viability and financing prospects.
The $7.1bn investment requirement comprises $5bn in debt and $2.1bn in equity. Proposed debt sources include export credit agencies, development finance institutions and local development finance institutions.
To advance implementation, the council said it had signed a $1bn engineering, procurement, construction and financing agreement with Chinese firm Sinomach, subject to agreed financial milestones.
It is also working with the Bank of Industry on a N10bn Sugar Project Acceleration Fund to finance feasibility studies and other preparatory work needed to make projects attractive to investors.
Bakrin said the council was seeking local and international investors, particularly from Brazil, India and China, adding that some projects could begin construction before the end of the year.
The plan also includes an outgrower scheme intended to bring smallholder farmers into the sugar value chain. It targets 11,000 hectares of farmer-grown sugarcane around existing mills, with 7,000 hectares already identified with partners in Kwara, Niger and Adamawa states.
The first 1,320 hectares are expected to be cultivated next year. The council is also developing offtake agreements to provide farmers with reliable markets for their produce.
The initiative is projected to supply about 880,000 tonnes of sugarcane and generate approximately 88,000 tonnes of sugar annually.
Beyond reducing imports, the programme is expected to support Nigeria’s E10 biofuel policy, which provides for a 10 per cent ethanol blend in fuel. The council also projects that the estates could cut annual emissions by two million metric tonnes of carbon dioxide equivalent.
Bakrin said the council was strengthening the industry’s technical capacity through improved planting materials, training and research. Seed farms covering 222 hectares have been established in Kwara, Kano and Oyo states, with another 122 hectares planned.
The initiative is expected to provide nearly 19,000 tonnes of certified sugarcane seed for the 2026/2027 planting season. The council is also promoting bud-chip technology to reduce the land required for raising seedlings.
To improve accountability, the NSDC said it was strengthening monitoring through physical inspections and satellite technology to track project development and assess operators’ compliance with their commitments.
Members of CICAN welcomed the plan but called for stronger enforcement of investment obligations, affordable long-term financing and greater transparency across the industry. They also warned that excessive imports by existing operators could undermine efforts to expand domestic production.
Responding to concerns about borrowing costs, Bakrin said the council was exploring financing structures that could reduce dollar-denominated borrowing costs to around six per cent.
The council said the plan’s success would depend on access to viable financing, reliable sugarcane supplies, effective implementation and sustained accountability across the value chain.
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