Nigeria signs US$1B agreement with China’s SINOMACH for sugar production
The National Sugar Development Council partners with Chinese firm SINOMACH for a US$1 billion sugar project as Nigeria pushes for self-sufficiency and reduces reliance on imports.
NIGERIA – Nigeria is moving forward with plans to increase its local sugar output as the National Sugar Development Council (NSDC) announces a new partnership with Chinese engineering firm SINOMACH.
The NSDC revealed that it had signed a memorandum of understanding with the Chinese conglomerate to develop an agro-industrial sugar production facility with the potential to yield 1 million tonnes of sugar annually.
While the exact site for the project has not been disclosed, authorities say the initiative is expected to draw up to US$1 billion (USD 1 billion) in investment, to be entirely provided by SINOMACH.
As outlined in the agreement, SINOMACH will handle the establishment of a sugar factory and a sugarcane farm capable of producing 100,000 tonnes of cane each year, while the NSDC will coordinate regulatory approvals and other required authorizations.
This development follows an earlier announcement by the Niger State government in September 2024 about a separate sugar production project involving both local and international firms.
That initiative includes the construction of six sugar mills on a 148,000-hectare site under a public-private arrangement, although the financial value of the project has not been made public.
Partners involved in the Niger State project include Indian firm Uttham Sucrotech International, Nigeria’s Rite Foods, and Legacy Sugar Company Ltd, with completion expected by 2027.
Both projects are part of efforts to implement the National Sugar Master Plan (NSMP), which targets full self-reliance in sugar production by the year 2033.
Currently, Nigeria produces only around 5% of the 1.5 million tonnes of sugar it consumes annually, with the shortfall made up through imports.
The United States Department of Agriculture projects that Nigeria will import approximately 1.8 million tonnes of sugar during the 2024/2025 period to meet domestic demand.
Nigeria ranks as the fifth-largest consumer of sugar in Africa, behind Egypt, Algeria, Sudan, and South Africa, but its domestic production has consistently lagged behind.
To close this gap, the Nigerian government is increasingly depending on foreign investors to fund and develop large-scale sugar production facilities within the country.
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