Nigeria invites investors to transform sugar industry, tap into Africa’s US$7B market
NIGERIA – The Nigerian government, through the National Sugar Development Council (NSDC), has called on both local and international investors to capitalize on the nation’s sugar industry, highlighting opportunities in the substantial domestic market and Africa’s US$7 billion sugar export industry.
Kamar Bakrin, Executive Secretary and CEO of NSDC, underscored that Nigeria’s annual sugar consumption sits at around 1.4 to 1.6 million metric tonnes, largely fulfilled by imports.
The country currently relies on Brazil for approximately 96% of its sugar needs, a dependency the NSDC aims to reduce significantly through the investment drive.
The Nigerian sugar market, valued at an estimated US$2 billion, presents a profitable venture for investors due to the strong, growing demand for domestic production, according to Bakrin.
He also pointed out that local production becomes even more advantageous amid currency fluctuations that make imports costly, making the shift to domestic production economically viable.
“The economics are compelling, with high Net Present Value and Internal Rate of Return at attainable scale, and available financing that aligns with business needs,” Bakrin said.
In line with its Backward Integration Plan (BIP), the Nigerian government is actively developing policies and incentives to support local production and reduce reliance on imported sugar.
The NSDC has introduced a community integration model encouraging investment in local development, where sugar project operators must invest in community-level projects, such as schools, clinics, and road construction, while also reserving managerial roles for local residents.
Bakrin noted, “This model ensures all stakeholders at the community level benefit, making the industry more secure and sustainable.”
The NSDC’s ambition is to tap into this $7 billion African sugar market while adding value to the Nigerian economy through high-value byproducts like ethanol, bioplastics, and packaging materials.
In preparation for expansion, the NSDC has declared 2025 as “the year of acceleration,” with a commitment to raise the necessary funds to support both local and global investors in their ventures within Nigeria’s sugar industry.
In 2022, the Nigerian government extended the National Sugar Master Plan (NSMP) for another ten years, aiming to achieve annual production of 1.7 to 1.8 million metric tonnes of sugar by 2033, eliminating the US$350 million spent annually on imports.
This new phase involves providing 300,000 hectares of irrigated land across nine states, along with the establishment of new sugar mills and refineries.
By 2033, the NSMP is projected to create 110,000 jobs, marking a significant stride toward self-sufficiency and economic growth in Nigeria’s sugar sector.
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