Nigeria has launched a N10 billion (approximately US$7.2 million) Sugar Project Acceleration Fund (SPAF) to stimulate investment in greenfield sugar initiatives and strengthen the country’s domestic sugar industry. The initiative, jointly unveiled by the National Sugar Development Council (NSDC) and the Bank of Industry (BOI), is aimed at providing both funding and project development support for viable new sugar projects.
Brandspur Business Desk reports that the SPAF is designed to address a key challenge in the Nigerian sugar sector: many promising projects fail to secure financing because they lack the structure, documentation, and risk mitigation measures required by lenders and investors. The fund will guide project promoters in developing proposals that meet investor standards and accelerate the creation of a competitive sugar industry.
Speaking at the launch, NSDC Executive Secretary Kamar Bakrin highlighted that access to capital alone is insufficient for increasing sugar production. “The constraint is not the availability of money. It is the availability of projects that are structured, documented, and de-risked to the standard required to receive financing,” Bakrin stated. He noted that development finance institutions and investors manage billions of dollars in agro-industrial funding but often struggle to identify projects that meet necessary financing standards.
Hadiza Shuaib, Executive Director of Public Sector and Intervention Programmes at BOI, explained that the bank will serve as fund manager, overseeing credit appraisal, risk management, loan disbursement, monitoring, evaluation, and account closure. Meanwhile, NSDC will provide sector leadership, technical guidance, and ensure projects align with Nigeria’s broader sugar development goals. Only businesses engaged in sugar production or related activities will qualify for support.
The SPAF builds on previous efforts to expand Nigeria’s sugar sector. Last year, NSDC partnered with The Lee Group to develop a multi-million-dollar sugar production facility in Taraba State and collaborated with Niger Foods Security Systems to cultivate 50,000 hectares of sugarcane with a target output of two million tonnes.
Officials say the fund is expected to attract credible investors, facilitate structured project development, and ultimately boost local sugar production while making the sector more investor-ready and sustainable.
This strategic initiative is part of Nigeria’s ongoing commitment to grow its agro-industrial base, reduce reliance on imports, and enhance food security through targeted support for high-potential sugar projects.
