The National Sugar Development Council (NSDC) has unveiled a $7.1 billion, 10-year investment programme to boost Nigeria’s annual sugar production beyond two million metric tonnes, save about $2.1 billion in foreign exchange annually and create 110,000 direct and indirect jobs.
The programme, which includes 10 new greenfield sugar estates, is expected to attract $2.1 billion in equity investment and $5 billion in debt financing, as the council intensifies efforts to reduce the country’s dependence on imported sugar and achieve self-sufficiency.
The 10 greenfield projects are projected to produce 835,000 metric tonnes of sugar annually at full capacity, forming a major component of the initiative to raise domestic output above current national demand of about 1.8 million metric tonnes.
Executive Secretary and Chief Executive Officer of the NSDC, Kamar Bakrin, disclosed the investment plan during a presentation to the new leadership of the Commerce and Industry Correspondents Association of Nigeria (CICAN), which paid him a courtesy visit.
Bakrin said the programme was designed to close Nigeria’s sugar production gap through three major interventions: improving the performance of existing estates, expanding production by incumbent operators and attracting new investors to develop greenfield estates.
According to the Council, the combined output of the three interventions is projected to exceed two million metric tonnes annually, positioning the country to meet domestic demand and reduce its foreign exchange expenditure on sugar imports.
The NSDC boss said the 10 greenfield projects had progressed beyond the conceptual stage, with credible promoters identified for all the projects and 143,478 hectares of land secured for development.
The projects also have a planned milling capacity of 55,500 tonnes of cane per day, while independent technical reviews are underway to ensure they meet bankability requirements.
He spoke about sugar estate, adding that each estate is designed as an integrated industrial complex capable of producing sugar, ethanol and electricity, creating opportunities to diversify revenue streams and improve the commercial viability of the investments.
The council Executive Secretary said the projects would complement existing operators and estates, which are expected to contribute approximately 100,000 metric tonnes and 1.22 million metric tonnes of sugar annually, respectively, under the programme.
Together, the three interventions are expected to deliver more than two million metric tonnes annually at full capacity.
“Beyond large-scale estate development, the NSDC is also working to strengthen the supply of sugarcane by supporting farmers around existing mills. The initiative targets 11,000 hectares for farmer-grown sugarcane, with 7,000 hectares—about 64 per cent of the target—already identified in collaboration with partners in Kwara, Niger and Adamawa states”, he said.
The council expects the initiative to supply 880,000 metric tonnes of sugarcane to existing mills annually and generate approximately 88,000 metric tonnes of sugar.
The farmer-based scheme is intended to improve access to raw materials, support local agricultural production and strengthen linkages between smallholder farmers and industrial sugar processors.
Giving further information on how the $7.1bn programme will be financed, he said the 10-year programme would be financed through a combination of $5 billion in debt and $2.1 billion in equity.
The proposed debt financing structure includes approximately $3 billion from export credit agencies, $1.75 billion from development finance institutions and $250 million from local development finance institutions.
The financing framework is expected to support the development of new estates, expansion of existing facilities and other investments required to increase production capacity across the value chain.
However, the programme’s successful implementation will depend on mobilising the projected funding, completing the technical assessments and translating investment commitments into operational production capacity.
To address shortages of quality sugarcane planting materials and specialised technical expertise, he said the Council. strengthened the Nigeria Sugar Institute (NSI).
The institute , according to him, is expected to provide training, extension services, planting materials, project evaluation and technical support for sugar estates.
“These interventions are intended to improve productivity, strengthen technical capacity and ensure that investments in new and existing estates deliver sustainable output.
The council is also moving towards closer monitoring of estate performance through physical inspections and satellite technology to track implementation and assess progress.
The NSDC projected that successful implementation of the programme would generate substantial economic and environmental benefits beyond increased sugar production.
The council estimates that domestic production of sugar and ethanol could save about $2.1 billion in foreign exchange annually and create 110,000 direct and indirect jobs across the value chain.
