Under the agreement, SINOMACH will be responsible for constructing a state-of-the-art sugar plant and establishing a sugarcane plantation with an initial production capacity of 100,000 metric tonnes per year. The NSDC will play a facilitating role by helping the investor navigate necessary regulatory processes and obtain required approvals.
Abuja, Nigeria – Nigeria’s sugar industry is poised for a major boost as the National Sugar Development Council (NSDC) has signed a landmark Memorandum of Understanding (MoU) with Chinese industrial giant, SINOMACH, to kickstart a large-scale sugarcane cultivation and processing initiative.
The project, which falls under the Nigeria-China Strategic Partnership framework driven by President Bola Tinubu’s administration, is expected to attract up to $1 billion in foreign direct investment. It aims to produce as much as one million metric tonnes of sugar annually, significantly scaling up local production.
Under the agreement, SINOMACH will be responsible for constructing a state-of-the-art sugar plant and establishing a sugarcane plantation with an initial production capacity of 100,000 metric tonnes per year. The NSDC will play a facilitating role by helping the investor navigate necessary regulatory processes and obtain required approvals.
Speaking at the signing ceremony held in Abuja, NSDC’s Executive Secretary/CEO, Mr. Kamar Bakrin, described the initiative as a strategic move towards achieving economic independence and bolstering food security.
“The year 2025 is critical for us. We are expecting tangible progress in our journey towards national development,” Bakrin stated. “A vibrant sugar industry will create jobs, improve rural infrastructure, and save the country valuable foreign exchange through reduced sugar imports.”
He further described the partnership with SINOMACH as a blueprint for broader industrial development, noting that the project would be executed under an Engineering, Procurement, and Construction (EPC) model, with financing provided by the Chinese firm.
“This MoU sets the foundation for what we envision as a long-term collaboration, with the ultimate goal of producing one million metric tonnes of sugar locally,” he added.
Also speaking at the event, SINOMACH Vice President, Li Xiao Yu, lauded Nigeria’s commitment to its Sugar Master Plan, calling the collaboration a symbol of deeper strategic ties rather than just a business deal.
“We see this not just as industrial policy, but as a sweet revolution that supports food sovereignty and economic dignity,” Li said. He also highlighted that the company is considering the use of RMB-based financing models, which could lower costs and speed up implementation timelines.
Li expressed confidence that the eventual host state for the project could emerge as the “Sugar Bowl of West Africa,” further transforming Nigeria’s agricultural landscape and value chain.
The project is expected to deliver major economic benefits, including job creation, increased local sugar production, and a stronger agro-industrial base for the country.
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