Nigeria needs $7.1 billion over 10 years to achieve sugar self-sufficiency — NSDC

The National Sugar Development Council (NSDC) estimates that Nigeria will need $7.1 billion in investment over the next decade to achieve self-sufficiency in sugar production. At a news conference in Abuja, NSDC Executive Secretary Kamar Bakrin disclosed this figure, outlining the long-term financing required to expand existing sugar estates and develop new projects.

The council's funding strategy includes $5 billion in long-term debt facilities and development capital, with $3 billion sourced from export credit agencies, $1.75 billion from other development finance institutions, and $250 million from local development finance providers. The remaining $2.1 billion is expected to be contributed by project promoters and operators.

Bakrin emphasized that the proposed funding structure reflects the capital-intensive nature of sugar production and the challenges of financing long development periods through conventional commercial loans. The council has already secured a $1 billion agreement with Chinese group Sinomach for engineering, procurement, construction, and financing for sugar estates. They have also developed similar financing frameworks with Chinese and Indian entities.

In addition to the NSDC's efforts, the Bank of Industry is collaborating on a N10 billion Sugar Project Acceleration Fund aimed at financing feasibility studies and enhancing the bankability of proposed sugar projects. The council is actively engaging with Afro-Asian Bank and other development agencies to facilitate financing and accelerate implementation of greenfield sugar projects nationwide.