NSDC mobilises $1bn for sugar infrastructure investments

The National Sugar Development Council (NSDC) in Nigeria has mobilized a $1 billion investment pipeline to accelerate the country's journey towards sugar self-sufficiency. This initiative, spearheaded by the council, involves a $1 billion engineering, procurement, and construction-plus-finance partnership with SINOMACH from China, along with a N10 billion Sugar Project Acceleration Fund established in collaboration with the Bank of Industry.

Speaking at a courtesy visit to the council’s headquarters in Abuja, NSDC's Executive Secretary and Chief Executive Officer, Kamar Bakrin, revealed that Nigeria consumes approximately 1.8 million metric tonnes of sugar annually, resulting in an annual foreign expenditure of $1 billion. The council sees this as an opportunity to generate more value within the Nigerian economy through job creation, income generation in rural areas, savings on foreign currency, and enhanced industrial capacity.

Bakrin emphasized that while policies exist, the challenge lies in the execution, which he attributes more to governance than farming. The NSDC is currently working on the Nigeria Sugar Master Plan 2.0, a "speed mandate" intended to expedite the country's path to self-sufficiency and produce around two million metric tonnes of sugar locally. The plan extends beyond sugar production, highlighting the potential of sugarcane to support the generation of ethanol, animal feed, and electricity.

The council has revamped the Backward Integration Programme around four key principles: "qualify, reward, verify, and enforce." Companies seeking import quotas are required to exhibit genuine commitment to backward integration, while major refiners must provide audited production commitments linked to their quotas. Furthermore, the NSDC is utilizing satellite imagery and field inspections to independently verify activities at sugar production sites.