Nigeria Seeks Investment to Develop $2 Billion Sugar Market
The Nigerian federal government is encouraging both local and international investors to explore opportunities within its burgeoning sugar market, which is valued at approximately $2 billion. Kamar Bakrin, the Executive Secretary and CEO of the National Sugar Development Council (NSDC), highlighted this initiative, pointing out that the country’s annual sugar consumption ranges between 1.4 and 1.6 million metric tonnes.
During a recent announcement, Bakrin emphasized that the NSDC is spearheading an investment campaign aimed at significantly decreasing Nigeria’s reliance on Brazil, which currently supplies around 96% of the nation’s sugar. He stated that the domestic market offers lucrative prospects due to the strong and increasing demand for locally produced sugar.
Furthermore, Bakrin underscored the financial advantages of local production in light of fluctuating currency rates that inflate import costs, making domestic production more economically feasible. “The economics are compelling, with high Net Present Value and Internal Rate of Return at attainable scale, alongside accessible financing that aligns with business needs,” he remarked.
In alignment with its Backward Integration Plan (BIP), the federal government is implementing policies and incentives designed to bolster local sugar production and reduce dependence on foreign imports. The NSDC has introduced a community integration model that mandates sugar project operators to invest in community development projects, such as schools, healthcare facilities, and road construction, while also ensuring that local residents are prioritized for managerial positions.
“This approach guarantees benefits for all stakeholders at the community level, contributing to a secure and sustainable industry,” Bakrin added.
The NSDC aims to capture a portion of the $7 billion African sugar market, with aspirations to enhance the Nigerian economy through high-value byproducts, including ethanol, bioplastics, and packaging materials.
To facilitate this expansion, the NSDC has designated 2025 as “the year of acceleration,” committing to mobilizing the necessary resources to support both local and international investors interested in the Nigerian sugar sector.
In 2022, the federal government renewed the National Sugar Master Plan (NSMP) for an additional decade, with the objective of achieving annual production levels of 1.7 to 1.8 million metric tonnes by 2033. This initiative aims to eliminate the current $350 million annual expenditure on sugar imports.
By 2033, the NSMP is expected to generate approximately 110,000 jobs, marking a significant advancement toward achieving self-sufficiency and economic growth within Nigeria’s sugar industry.
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