NSDC, NGF Strike Partnership on Accelerating Sugar Projects in States
The Nigeria Governors’ Forum (NGF) secretariat has agreed to prioritise sugar as a key product for the acceleration of industrial development in states across the country.
The NGF also accepted to include sugar projects as priority beneficiary in their engagements with development partners within and outside the country.
The above decisions were made as a consequence of requests made by the National Sugar Development Council (NSDC) in the pursuit of its mandate to develop the sugar sector, stop importation of raw sugar, create jobs and pursue the attainment of self-sufficiency in sugar production.
The Forum therefore agreed to a partnership with the NSDC that will focus on supporting states to prepare and position sugar projects that are investor-ready, facilitating structured engagement between state governments, investors, and industry operators, and improving coordination around critical enablers such as land access, infrastructure provision, and incentive frameworks.
The Executive Secretary/CEO of NSDC, Mr. Kamar Bakrin, who made the above requests in a meeting with the NGF leadership pitched the huge investment opportunities in the sugar sector to the officials, calling on governors of states – through the instrumentality of NGF – which are viable for sugarcane cultivation to embrace sugar project development with open arms.
He listed the 11 states with proven, suitable lands for profitable sugar production as Oyo, Kwara, Niger, Nasarawa, Kaduna, Kano, Bauchi, Gombe, Jigawa, Adamawa and Taraba.
Mr. Bakrin noted that recent macroeconomic developments have improved the competitiveness and profitability of local sugar production. “While global sugar prices have remained relatively stable in dollar terms, exchange rate movements have made imports significantly more expensive, thereby enhancing the commercial viability of domestically produced sugar, whose inputs are largely naira-denominated,” the Executive Secretary said.
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The NSDC boss emphasised that Nigeria now has strong operational fundamentals for sugar production. According to him, comprehensive assessments have identified approximately 1.2 million hectares of prime land suitable for large scale sugarcane cultivation nationwide, even though the country only needs 200,000 hectares of land to achieve self-sufficiency in sugar production. “The availability of suitable land, water resources, labour, and policy incentives positions Nigeria favourably for large-scale sugar investments,” he said.
He informed the gathering that the above critical factors have created an opportunity to invest in Nigeria’s sugarcane growing and processing industry, adding that the sector is now worth $2 billion while with the aid of the African Continental Free Trade Agreement (AfCFTA), it is worth $7 billion on the continent. The NSDC boss added that the market for sugar bye-products alone is worth $10 billion in Nigeria.
Talking about community interest, the NSDC boss said, “the Nigerian sugar industry does not displace communities; instead, it integrates them into the value chain as partners, workers, and stakeholders through outgrower schemes and employment opportunities.”
He continued: “Sugarcane projects will empower host communities, promote inclusive development, and support environmental sustainability.”
A model sugar project producing 100,000 metric tons annually was also cited by Mr. Bakrin as evidence of the sector’s commercial attractiveness, with estimated investments of about US$250 million delivering an Internal Rate of Return (IRR) of approximately 24 per cent and a positive net present value. He noted that in addition to sugar, such projects generate valuable bye-products including ethanol and bio-electricity which further enhance returns and sustainability.
Also speaking, the Director-General of the NGF, Dr. Abdulateef Shittu, noted that many state governments are already engaged, or are keen to engage, in sugar-related investments spanning land development, agricultural schemes, and agro-industrial initiatives. He however added that unlocking these opportunities requires effective coordination, credible investment frameworks, and strong alignment between federal policy objectives and state-level development priorities.
He therefore pledged the commitment of the NGF secretariat to ensure that such state-level development priorities begin to focus on sugar project investments based on their capacity for rural development and job creation.
By PRNigeria
