NSDC mobilises $1bn investment pipeline for sugar self-sufficiency

The National Sugar Development Council (NSDC) in Nigeria is mobilising a $1bn investment pipeline to boost the country's efforts towards achieving sugar self-sufficiency. The initiative involves a $1bn engineering, procurement and construction-plus-finance partnership with SINOMACH, a Chinese company, and a N10bn Sugar Project Acceleration Fund established with the Bank of Industry.

Currently, Nigeria consumes around 1.8 million metric tonnes of sugar annually, with $1bn flowing to foreign producers each year. The NSDC views this as an opportunity to retain more value within the Nigerian economy, creating jobs, increasing rural incomes, saving foreign exchange, and boosting industrial capacity.

NSDC's Executive Secretary and CEO, Kamar Bakrin, emphasized that the main challenge lies in governance rather than farming. The council has outlined a plan called Nigeria Sugar Master Plan 2.0, which aims to shorten the path to self-sufficiency and produce two million metric tonnes of sugar locally. This plan extends beyond sugar production, as sugarcane can support ethanol, animal feed, and electricity production.

The council is enforcing this plan through its Backward Integration Programme, which has four principles: qualify, reward, verify, and enforce. Companies seeking import quotas will need to demonstrate genuine commitment to backward integration, while major refiners will provide audited production commitments tied to their quotas.

To address the sector's financing challenge, the council has established a N10bn Sugar Project Acceleration Fund, which will finance feasibility studies and project preparation. This fund will convert greenfield sites into investment-ready packages, feeding the $1bn EPC-plus-finance agreement with SINOMACH. The council is also partnering with Afreximbank and the Nigeria Governors' Forum to fast-track the development of sugar estates across the country.

Bakrin highlighted the importance of institutional development and invited the Chartered Institute of Directors to contribute to the sector's development by strengthening board governance across sugar estates, mills, and outgrower companies.