NSDC urges Nigerian farmers, investors to tap US$2B sugar market potential 

NIGERIA – The National Sugar Development Council (NSDC) has called on members of the All Farmers Association of Nigeria (AFAN) and potential investors to seize the growing opportunities in Nigeria’s sugar industry, which is currently valued at over US$2 billion. 

Speaking to stakeholders, NSDC Executive Secretary Kamar Bakrin urged farmers and entrepreneurs to align with the national strategy to reduce Nigeria’s reliance on imported sugar and its by-products.  

He stated that local production offers not only economic advantage but also high profitability, backed by government support and an assured market. 

Bakrin highlighted that Africa’s sugar market is worth US$7 billion, with the continental production deficit expected to reach 13 million metric tons by 2030 due to increasing demand and regional shortfalls.  

The by-product market, including ethanol and animal feed, is estimated at US$10 billion, offering further revenue streams for investors. 

The NSDC boss explained that current macroeconomic realities—such as foreign exchange constraints and global supply chain disruptions—have made local sugar production more viable and imports more difficult.  

He noted that NSDC has secured a land bank of 150,000 hectares suitable for sugarcane cultivation. The land is located in secure regions with favorable climate conditions, water access, and community support. 

To close the production gap, the Council aims to place 50,000 hectares under sugarcane cultivation through its commercial outgrower initiative. Targeted farmers will operate plots ranging between 50 to 200 hectares, particularly near existing sugar estates in Numan, Bacita, Sunti, and Lafiagi. 

Under the National Sugar Master Plan II (NSMP II), NSDC has structured a comprehensive incentive package to de-risk investment.  

These include access to the Nigeria Sugar Industry Development Fund (NSIDF), five-year tax holidays, 30% tax credit on infrastructure costs, concessional tariffs on imported equipment, and technical support from the Nigerian Sugar Institute.  

Additional benefits include land lease facilitation, input supply, mechanisation, and guaranteed offtake agreements with processors. 

Bakrin added that sugarcane processing also generates valuable by-products such as biogas, bioelectricity, and bioplastics.

He emphasized that Africa, despite having 19 sugar-producing nations, remains a net importer, positioning Nigeria to serve as a cost-competitive supplier under the African Continental Free Trade Area (AfCFTA).

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