Bakrin: $7.1bn Sugar Plan to Save $2.1bn in FX Annually

The National Sugar Development Council (NSDC) unveiled a $7.1 billion, 10-year sugar development plan aimed at generating $2.1 billion in annual foreign exchange savings, creating 110,000 jobs and increasing national output beyond two million tonnes. Kamar Bakrin, NSDC Executive Secretary/Chief Executive, detailed the ambitious initiative during a press briefing in Abuja.

Ten proposed greenfield estates, each targeted to produce 835,000 metric tonnes of sugar annually at full capacity, form the backbone of the plan. These projects are expected to complement production from existing estates and additional output from incumbent operators. The council secured land for these projects across eight states, with climatic conditions suitable for sugarcane cultivation in 14 states.

The $7.1 billion investment, a mix of $5 billion in debt and $2.1 billion in equity, will support the greenfield projects and the enhancement of existing estates. The NSDC envisions the expansion of existing mills contributing approximately 100,000 tonnes annually, while incumbent operators are projected to add 1.22 million tonnes to the national output.

Additionally, the council is exploring the integration of bioenergy platforms into sugar estates to produce sugar, ethanol, and electricity, aiming to meet Nigeria's ethanol blending mandate. The programme also targets 11,000 hectares for farmer-grown sugarcane near existing mills, potentially supplying 880,000 tonnes of cane and generating 88,000 tonnes of sugar annually.

With an estimated 110,000 direct and indirect jobs created, the initiative is projected to boost the GDP of host communities by over 100% over a decade and curtail carbon emissions by approximately two million tonnes annually.