Nigeria is targeting annual sugar production of more than two million metric tonnes under a $7.1bn investment programme designed to reduce import dependence and save the country an estimated $2.1bn in foreign exchange annually.
The National Sugar Development Council (NSDC) said 10 proposed greenfield sugar estates would contribute 835,000 metric tonnes of annual production when operating at full capacity, forming a major part of its 10-year strategy to achieve sugar self-sufficiency.
Brandspur Banking News Desk reports that the council is moving to expand domestic production through new industrial estates, improvements to existing facilities and increased investment by established sugar operators.
NSDC Executive Secretary, Kamar Bakrin, disclosed the plan while receiving the new leadership of the Commerce and Industry Correspondents Association of Nigeria. He said promoters had been identified for all 10 greenfield projects, while 143,478 hectares of land had been secured for their development.
The proposed estates have a combined planned milling capacity of 55,500 tonnes of cane per day. Each is designed to produce sugar alongside ethanol and electricity, with the projects undergoing independent technical assessments.
The council is also seeking to improve output from existing sugar estates and accelerate expansion by established operators. According to Bakrin, existing estates have annual production capacity of about 100,000 metric tonnes, while incumbent operators have capacity exceeding 1.22 million metric tonnes.
Together, the proposed developments and existing operations are expected to push domestic production above two million metric tonnes annually, exceeding current national demand if the projects achieve their projected output.
Beyond large-scale industrial production, the NSDC is working to increase the supply of sugarcane from local farmers. The initiative targets 11,000 hectares of farmer-grown cane around existing mills, with 7,000 hectares already identified in partnership with stakeholders in Kwara, Niger and Adamawa states.
The programme is expected to supply 880,000 metric tonnes of sugarcane to existing mills annually and generate about 88,000 metric tonnes of sugar.
Funding remains central to the plan. The council estimates that the 10-year programme will require $7.1bn, comprising $5bn in debt financing and $2.1bn in equity.
The proposed debt funding includes approximately $3bn from export credit agencies, $1.75bn from development finance institutions and $250m from local development finance institutions.
The council has also strengthened the Nigeria Sugar Institute to address shortages of quality planting materials and technical expertise. Its responsibilities include training, agricultural extension services, planting material supply, project evaluation and support for sugar estates.
If successfully implemented, the programme could reduce the need for imported sugar, ease pressure on foreign exchange and create opportunities across sugarcane farming, processing and related industries.
However, achieving the targets will depend on securing the required financing, completing the proposed projects and ensuring that the new and existing estates deliver their expected production levels.
