The National Sugar Development Council (NSDC) and the Nigerian Export-Import Bank (NEXIM Bank) have formed a strategic partnership to unlock long-term financing for Nigeria’s sugar industry.
At a high-level meeting in Abuja, both institutions agreed to work together to drive large-scale sugar production and reduce the country’s heavy reliance on imports.
Leading the NSDC team, Executive Secretary and CEO, Mr. Kamar Bakrin, proposed the adoption of an Engineering, Procurement, Construction plus Financing (EPC+F) model. According to him, this structure will help attract patient capital needed to transform the sector.
Under the proposed arrangement, the NSDC will originate and develop bankable projects. It will also help mobilise equity from investors. Meanwhile, NEXIM Bank will lead capital mobilisation by connecting projects to international Export Credit Agencies (ECAs) and Development Finance Institutions (DFIs). In addition, the Bank will support foreign input financing and provide guarantees and commercial risk insurance.
$2bn Local Market, $7bn African Opportunity
Bakrin highlighted the strong commercial potential of the sugar sector. He said Nigeria’s sugar market is worth about $2 billion. Across Africa, the market stands at roughly $7 billion.
More importantly, he noted that sugar by-products such as ethanol and other derivatives represent a market valued at over $10 billion in Nigeria alone.
“Nigeria cannot achieve self-sufficiency in sugar production with short-term funding,” Bakrin said. “The sector needs long-term financing deployed at scale and backed by policy certainty. Through this partnership, we are building a structure that allows serious investors to execute real projects.”
Furthermore, he explained that Nigeria can serve both local and regional markets under the African Continental Free Trade Agreement (AfCFTA) if investors gain access to affordable, long-term capital.
$1bn Financing Structure Already in Place
Bakrin revealed that the Council has already tested the EPC+F model through a partnership with SINOMACH, a major Chinese engineering firm.
Under that deal, investors structured up to $1 billion in financing at the Secured Overnight Financing Rate (SOFR) plus three per cent. The facility carries a 15-year tenor and a three-year moratorium.
As a result, the model aims to fast-track large-scale sugar projects nationwide. It is expected to save about $300 million annually in foreign exchange through import substitution. In addition, it could create more than 50,000 jobs across farming, processing, logistics and related services. Within five to ten years, the programme targets up to 25 per cent import substitution.
Strengthening Policy and Reducing Risk
To boost investor confidence, the NSDC has taken steps to strengthen policy stability. For instance, the Council is working to codify the Nigeria Sugar Master Plan (NSMP) into law through amendments to the NSDC Act. This move will help guarantee continuity and protect long-term investments.
At the same time, authorities have intensified efforts to curb smuggling and the influx of cheaper imported sugar. According to Bakrin, stricter enforcement and penalties will protect local producers and encourage serious investors.
He also stressed that large-scale projects will create jobs at every stage of the value chain. Through outgrower schemes, the Council plans to integrate smallholder farmers into commercial operations. Consequently, rural incomes will rise and inclusive growth will improve.
Host communities will also benefit. Project developers will prioritise local hiring, skills training, and investments in infrastructure, healthcare and education.
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These measures, Bakrin said, will promote social stability and long-term project success.
Beyond economics, the NSDC sees sugar as a climate-friendly crop. Sugarcane acts as a renewable resource and absorbs carbon throughout the year. In addition, producers can convert by-products into ethanol and bioelectricity, which support Nigeria’s energy transition goals.
Bakrin added that credible operators with proven technical and financial capacity will drive all projects. Developers will also secure land access and community approval at early stages to avoid delays and improve bankability.
NEXIM Signals Commitment
In his remarks, NEXIM Bank Managing Director, Mr. Abba Bello, welcomed the initiative. He described the sugar industry as critical to Nigeria’s diversification agenda and export growth plans.
He also expressed the Bank’s readiness to support structured financing that strengthens local value chains and boosts Nigeria’s competitiveness in regional and global markets.
Bello commended the NSDC’s clear execution strategy. He reaffirmed NEXIM Bank’s commitment to supporting viable export-oriented and import-substitution projects that align with national development priorities.
With this partnership, both institutions aim to move Nigeria from heavy sugar imports toward large-scale domestic production backed by stable, long-term financing.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
