NSDC wants Sugar Sector Reform to Cut $1bn FX Outflow
The National Sugar Development Council (NSDC) has reiterated that a full implementation of the National Sugar Master Plan (NSMP) could save Nigeria over $1 billion in foreign exchange annually, while also creating jobs, attracting massive investments, and spurring rural development.
Executive Secretary of the NSDC, Kamar Bakrin, stated this on Thursday during a public hearing at the House of Representatives on a bill seeking to amend the National Sugar Development Council Act. The proposed legislation aims to redefine the council’s powers and functions, and to align its financial operations with the 1999 Constitution.
Bakrin highlighted the immense potential of Nigeria’s sugar industry if the NSMP is properly implemented, noting that the plan is designed to stimulate domestic production and reduce reliance on imports. “We need about $4.5 billion in investments to fully realize the vision of the NSMP,” he said.
“Investor confidence is crucial, and that can only be achieved through transparent and rule-based policies.”
He raised concerns over a recent government directive mandating that 50 percent of the sugar levy be paid into the Consolidated Revenue Fund (CRF), arguing that such a move could derail progress.
“The sugar levy was not meant as a general revenue-generating mechanism but as a dedicated fund to support the sector’s growth. Redirecting it threatens to undermine the very purpose for which it was created,” he warned.
The public hearing attracted major stakeholders, including representatives from the Nigeria Customs Service (NCS), National Agency for Food and Drug Administration and Control (NAFDAC), BUA Group, Flour Mills of Nigeria, and the Abuja-based consultancy NINA-JOJER.
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NAFDAC Director General, Prof. Mojisola Adeyeye, represented by Iba Edward, acknowledged the intent of the bill but warned against overlaps with the agency’s regulatory mandate. “Some proposed provisions encroach on NAFDAC’s core responsibilities under Section 5 of our Act. We urge the lawmakers to clearly define roles to avoid duplication,” she said.
Minister of State for Industry, Senator John Owan Enoh, emphasized the sector’s strategic importance in driving President Bola Tinubu’s vision of a $1 trillion economy. He noted that despite over $2 billion in incentives provided under the NSMP’s first two phases, the sugar sector still lags in contribution to GDP. “We must be deliberate in creating a framework that guarantees return on investment and drives genuine industrialization,” he stated.
Private sector players also shared insights. Dr. Aliyu Idi Hong, a former minister now representing BUA Group, said the company has invested in a 50,000-hectare sugar plantation, with 20,000 hectares already under cultivation.
He stressed the importance of stable policies for investor confidence. “We’re not there yet, but we’re making progress. Regulatory certainty is key,” he said.
Similarly, Mr. Onome Okurah, Head of Government and Community Relations at Flour Mills of Nigeria, spoke about the company’s ongoing efforts.
“We’re cultivating over 6,000 hectares and currently run sugar production for up to four months annually. With stronger partnerships, we expect tangible results in the coming years,” he said.
Chairman of the House Committee, Rep. Enitan Dolapo Badru, assured stakeholders that the legislative amendment would be inclusive and aimed at strengthening the NSDC’s capacity to deliver on its mandate.
“This hearing is about listening to all sides and building a framework that supports a competitive, job-creating sugar industry,” he said.
The House committee pledged to consider all feedback before forwarding the bill for third reading and passage.
