Nigeria’s push to strengthen local sugar production gained momentum as the National Sugar Development Council (NSDC) and the Bank of Industry (BOI) launched a ₦10 billion Sugar Project Acceleration Fund (SPAF) to support the development of new sugar projects across the country.
The initiative targets greenfield sugar projects and aims to provide both financing and technical support to project promoters. Officials say the intervention will help speed up the growth of a sustainable and competitive sugar industry while reducing Nigeria’s reliance on imported sugar.
The council hosted an interactive session where officials from NSDC and BOI engaged potential beneficiaries and project promoters. During the meeting, they explained the structure of the fund, eligibility requirements, and the support available under the programme.
Funding Alone Not Enough for Sugar Development
Speaking at the session, Executive Secretary and Chief Executive Officer of the National Sugar Development Council, Kamar Bakrin, said access to capital alone does not guarantee the success of sugar projects.
According to him, development finance institutions and impact investors currently manage billions of dollars in agro-industrial finance and are actively seeking credible investment opportunities in African food systems.
However, he stressed that many projects fail to secure financing because they are not structured to meet the strict requirements of lenders and investors.
“Capital availability, on its own, will not result in sugar production,” Bakrin said.
He explained that a bankable project must begin with a credible feasibility study that examines agronomy, water balance, infrastructure needs, and social and environmental risks.
Bakrin added that investors also require strong financial models that test different economic scenarios and demonstrate the project’s ability to service debt even under adverse conditions.
He further noted that successful projects must present clear land tenure arrangements, a workable outgrower programme, and a credible implementation plan supported by experienced management teams.
In addition, project promoters must comply with Environmental, Social, and Governance (ESG) standards required by international financial institutions.
Closing the Gap Between Concepts and Bankable Projects
Bakrin noted that many of the proposals submitted to the council remain at the early concept stage and do not yet meet the standards required for financing.
He said moving a project from concept to financial close requires deliberate investment in project preparation — a stage that many promoters struggle to finance independently.
To address this gap, he explained that NSDC created the Sugar Project Acceleration Fund as a structured pre-investment facility.
“SPAF will provide the technical, financial, and advisory support that project promoters need to develop their projects to bankable standards,” Bakrin said.
He stressed that the programme is not a grant initiative but a performance-driven facility designed to deliver measurable outcomes.
“SPAF is not a gesture. It is an output-oriented facility with clear eligibility criteria and defined deliverables,” he added.
According to him, the ultimate goal is to build a pipeline of credible Nigerian sugar projects capable of attracting large-scale investment.
BOI to Manage the Fund
Also speaking at the event, Hadiza Shuaib, who led the Bank of Industry delegation, confirmed that BOI will serve as the fund manager for SPAF.
She explained that while BOI will oversee the financial management of the fund, the National Sugar Development Council will provide sector leadership and technical guidance.
According to Shuaib, the bank will handle several operational responsibilities, including credit appraisal, risk management, loan disbursement, monitoring and evaluation, and account closure after full repayment.
She added that the programme will place strong emphasis on skills development and capacity building to ensure that project promoters possess the expertise required to run large-scale sugar operations.
“As fund manager, BOI will ensure that projects are properly structured, risks are well managed, and funds are deployed responsibly,” she said.
Shuaib stressed that financing alone cannot guarantee long-term success, noting that strong management and technical capacity remain critical for sustainable outcomes.
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She also clarified that only businesses engaged in sugar or sugar-related activities will qualify to benefit from the fund.
Several companies pursuing greenfield sugar development projects participated in the interactive session.
They include Illaj Sugar, Brent Foods, Crystal Sugar, Legacy Sugar, Saro Sugar, Awaa, Ganic, and Confluence Sugar.
Industry stakeholders believe the fund could play a key role in strengthening Nigeria’s sugar value chain by encouraging new investments, expanding local production, and creating employment opportunities across rural communities.
Ultimately, the Sugar Project Acceleration Fund aims to bridge the long-standing gap between project ideas and bankable investments, helping Nigeria build a stronger and more self-sufficient sugar industry.
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.
