Nigeria launches US$7.2M sugar project acceleration fund to boost Greenfield sugar investments
The fund is set to help structure and finance new sugar projects, aiming to strengthen domestic production and build a competitive, investor-ready sugar industry.
NIGERIA – The National Sugar Development Council (NSDC) and the Bank of Industry (BOI) have launched a N10 billion Sugar Project Acceleration Fund (SPAF) aimed at supporting the development of greenfield sugar projects and strengthening Nigeria’s domestic sugar industry.
The financing facility is designed to provide both funding and project development support to viable greenfield sugar initiatives in order to accelerate the emergence of a sustainable and competitive sugar sector in the country.
The initiative was unveiled during an interactive session organised by the council, where officials from both institutions engaged with greenfield project promoters who are expected to benefit from the facility.
Executive Secretary and Chief Executive Officer of the National Sugar Development Council, Kamar Bakrin, said that access to capital alone is not enough to guarantee increased sugar production.
“Here is a reality that every serious project promoter knows. Capital availability, on its own, will not result in sugar production,” Bakrin said.
He noted that development finance institutions and investors already control substantial funding earmarked for agro-industrial projects but often struggle to identify projects that meet the required financing standards.
“Development finance institutions manage billions of dollars in agro-industrial finance and are under pressure to deploy capital, while investors are actively seeking credible opportunities in African food systems,” he said.
Bakrin added that many sugar development initiatives fail to secure financing because they lack the necessary structure and documentation required by lenders and investors.
“The constraint is not the availability of money. It is the availability of projects that are structured, documented and de-risked to the standard required to receive financing,” he said.
According to Bakrin, SPAF was created to help project promoters develop proposals that meet investor and lender requirements.
Also speaking at the event, the Executive Director of Public Sector and Intervention Programmes at the Bank of Industry, Hadiza Shuaib, said BOI will serve as the fund manager while NSDC will provide sector leadership and technical guidance.
“As Fund Manager, BOI will ensure that projects are properly structured, risks are effectively managed, and funds are deployed responsibly,” Shuaib said.
Shuaib explained that BOI will be responsible for credit appraisal, risk management, loan disbursement, monitoring and evaluation, and account closure after full repayment.
She noted that only businesses engaged in sugar or sugar-related activities will qualify for support under the facility.
The initiative builds on ongoing efforts to expand Nigeria’s sugar industry. Last year, the National Sugar Development Council partnered with The Lee Group to develop a multi-million-dollar sugar production facility in Taraba State.
In September, the council also collaborated with Niger Foods Security Systems to cultivate 50,000 hectares of sugarcane with a targeted output of two million tonnes.
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