The National Sugar Development Council (NSDC) has unveiled a $1 billion investment pipeline and a tighter enforcement framework as Nigeria intensifies efforts to achieve self-sufficiency in sugar production and cut its dependence on imports.
Nigeria consumes about 1.8 million metric tonnes of sugar annually, with an estimated $1 billion spent each year on imported sugar. The NSDC says the huge import bill represents a ready domestic market that can instead support local production, create jobs, boost rural incomes and strengthen Nigeria’s industrial base.
The Executive Secretary and Chief Executive Officer of the NSDC, Kamar Bakrin, disclosed this in Abuja when he received members of the Abuja Chapter of the Chartered Institute of Directors (CIoD) on a courtesy visit.
$1bn pipeline targets local production
Bakrin said the Council’s strategy under the Nigeria Sugar Master Plan 2.0 is focused on moving the sector from policy formulation to execution, with a target of producing about two million metric tonnes of sugar locally.
“We don’t lack policy. What we have struggled with is world-class execution,” Bakrin said, describing the challenge as one of governance and institutional delivery rather than a lack of agricultural potential.
At the centre of the investment drive is a $1 billion Engineering, Procurement, Construction and Financing partnership with Chinese firm SINOMACH, aimed at accelerating the development of large-scale sugar projects and expanding Nigeria’s sugar production capacity.
The Council is also deploying a ₦10 billion Sugar Project Acceleration Fund established with the Bank of Industry to finance feasibility studies and project preparation, with the aim of converting greenfield sugar projects into bankable investment opportunities.
From sugar to a wider bio-industrial economy
Beyond replacing imported sugar, Bakrin said the Council is seeking to build a broader bio-industrial ecosystem around sugarcane.
He said the crop could generate multiple products, including sugar, ethanol, animal feed and electricity, creating additional revenue streams and supporting industrialisation, rural development and energy generation.
The Council is also engaging development finance institutions, including Afreximbank, while working with the Nigeria Governors’ Forum to fast-track the development of sugar estates across states with suitable land for cultivation.
Tougher rules for import quotas
On enforcement, the NSDC said companies seeking import quotas under the Backward Integration Programme would be required to demonstrate genuine investment in domestic sugar production.
Major refiners are expected to provide audited production commitments tied to their quotas, while the Council plans to combine satellite imagery with physical inspections to independently verify activities on sugar estates.
Bakrin said the approach would replace reliance on self-reporting with data-driven monitoring and ensure that companies benefiting from import privileges meet their backward integration obligations.
The Council is also placing smallholder farmers and host communities at the centre of the strategy through the Sugarcane Outgrower Development Programme.
Under the framework, sugar estates are expected to allocate land to outgrowers and invest in host communities through employment, infrastructure and social development.
NSDC looks to Brazil for lessons
Bakrin said Nigeria could draw important lessons from Brazil, where sustained institutional development helped build a globally competitive sugar industry.
“Brazil did not win by planting better cane. They won by building institutions that compounded productivity for years, for decades,” he said.
He added that the NSDC was adopting Standard Operating Procedures and Six Sigma methodology across its operations to establish systems capable of delivering results beyond individual administrations and leadership tenures.
Bakrin urged the Chartered Institute of Directors to support the emerging sugar economy by strengthening corporate governance across sugar estates, mills and outgrower companies.
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Earlier, the leader of the CIoD delegation, Fatima Nana Mede, commended the NSDC’s reform efforts and expressed the institute’s readiness to collaborate with the Council in advancing Nigeria’s sugar industry.
The NSDC said successful implementation of the Nigeria Sugar Master Plan 2.0 would enable the country to retain billions of dollars currently spent on sugar imports within the domestic economy, while creating jobs, expanding rural infrastructure and developing a competitive agro-industrial value chain.
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.