NSDC targets $1bn investment to cut sugar imports

The National Sugar Development Council (NSDC) in Nigeria is seeking to secure $1 billion in investment to boost the country's sugar industry. This funding is part of a $1 billion Engineering, Procurement, and Construction-plus-finance agreement with SINOMACH from China and a N10 billion Sugar Project Acceleration Fund established with the Bank of Industry.

NSDC Executive Secretary, Mr. Kamar Bakrin, revealed this during a meeting with the Abuja Chapter of the Chartered Institute of Directors. Nigeria uses approximately 1.8 million metric tonnes of sugar annually, with an estimated $1 billion spent on imports. The NSDC's Nigeria Sugar Master Plan 2.0 aims to increase local production and maximize the value of the domestic market within the Nigerian economy.

The council's strategy extends beyond sugar production to the broader industrial use of sugarcane, which can also yield ethanol, animal feed, and power. NSDC's Backward Integration Programme includes four principles: qualify, reward, verify, and enforce. Companies seeking import quotas must demonstrate commitment to backward integration, while major refiners must provide audited production commitments tied to their quotas.

The council is also leveraging satellite imagery and field inspections to verify activities at project sites, reducing reliance on self-reporting. Financing remains a challenge due to the limited number of bankable projects that can attract capital. The N10 billion Sugar Project Acceleration Fund, established with the Bank of Industry, will finance feasibility studies and project preparation to transform greenfield sites into investment-ready projects.

The council is also collaborating with Afreximbank and the Nigeria Governors' Forum to accelerate the development of sugar estates across the country. NSDC is employing the Six Sigma methodology to establish standardized and repeatable processes for critical support functions, emphasizing that the difference between industrialized and non-industrialized countries often lies in the quality of institutions rather than plant quality.