Why Investments in Local Sugar Production is Profitable Now – NSDC Boss
The Executive Secretary of the National Sugar Development Council (NSDC), Mr. Kamar Bakrin, has called on members of the All Farmers Association of Nigeria (AFAN) and other potential investors to seize the immense opportunities currently available in Nigeria’s sugar sector.
Addressing the farmers who paid him a courtesy call in his office, Mr. Bakrin called on stakeholders to key into the national push to reduce the country’s over-dependence on imported raw sugar and its by-products.
According to the NSDC boss, local production of sugar is not just a strategic economic imperative but a profitable venture with an assured market, attractive returns, and strong government backing.
“This is the right time to invest. The Nigerian sugar market is currently valued at over $2 billion, that of Africa is $7bn and the continental deficit will rise to 13 MT in 2030 due to rising demand and regional supply gaps. The market for sugar by-products is worth $10bn,” Mr. Bakrin said.
He noted that country’s sugar consumption figures, foreign exchange realities and rising global supply chain uncertainties have made investments in local production more profitable than ever before.
The Executive Secretary told his guests that the prevailing macroeconomic conditions have made local production more competitive and importation more challenging.
Mr. Bakrin informed the gathering that after a robust land viability assessment, the Council is now in possession of a land bank of 150,000 ha that is suitable for sugarcane cultivation and available to new investors. The hectares of land, he said, lie in secure regions with favourable climate, proximity to water sources, and community support.
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“It has become very very valuable to produce sugar in Nigeria now. It wasn’t always the case but it is the case now. Four critical factors that have created compelling opportunities to invest in sugarcane growing and processing to meet local and export demand for sugar and associated value-added products include (1) Attractive Market(s) (2) Operational Feasibility (3) Sound Economics and (4) Sustainable and Future-proof Business.
”To bridge the production deficit with the commercial outgrower initiative, the Council aims to place at least 50,000 hectares of land under cane and recruit capable commercial farmers with farm sizes ranging from 50 to 200 hectares, particularly within proximity to sugar estates in Numan, Bacita, Sunti, and Lafiagi,” he added.
To de-risk investment, Mr. Bakrin revealed that NSDC has structured a robust support package under the NSMP II.
These incentives include access to the Nigeria Sugar Industry Development Fund (NSIDF); import tariffs on equipment and a five-year tax holiday; 30% tax credit on infrastructure cost; land clearing and lease facilitation with host communities; seedlings and input support; mechanisation and technical expertise from the Nigerian Sugar Institute; and guaranteed offtake agreements with sugar processors.
“We are not just inviting investors; we are providing the tools, capital, and partnerships to ensure they succeed,” Bakrin emphasised.
He added that sugarcane processing provides significant by-product opportunities, such as ethanol, animal feed, biogas, bioelectricity, and bioplastics, further enhancing the investment’s profitability and sustainability.
”Despite having 19 sugar-producing countries, Africa remains a net sugar importer. The African Continental Free Trade Area (AfCFTA), according to Bakrin, gives Nigerian producers a unique opportunity to tap into regional markets with minimal trade barriers.
“With preferential access and policy support, Nigeria can become Africa’s cost-leader in sugar production,” he said.
The NSDC boss reiterated the Council’s commitment to supporting credible and experienced commercial farmers, especially those with access to capital and expertise in modern farming techniques.
“This is not just an investment opportunity, it’s a national development imperative. We call on AFAN and other private sector players to join us in reshaping Nigeria’s sugar economy and achieving self-sufficiency in production,” he urged.
Also speaking at the meeting, the President of the Association, Dr. Faruk Rabiu Mudi, accepted the task of mobilising its members to show more interest in the sugar industry especially the commercial outgrower scheme.
He admitted that the country’s local production numbers compared to consumption are not good enough, noting that addressing the deficit is not a task for the NSDC alone.
By PRNigeria
