From the sugar added to a morning cup of tea to the soft drinks and fruit juices produced locally, Nigeria’s dependence on imported sugar remains evident, as much of the commodity consumed by the country’s food and beverage industries is sourced from abroad.
The Federal Government is making effort to reverse the trend through renewed investments in sugar production, improved agricultural practices and alternative financing arrangements.
The initiative involves establishing new sugar estates, expanding existing facilities and improving sugarcane farming to increase domestic output and reduce reliance on foreign supplies.
The National Sugar Development Council, NSDC, says its latest programme is designed to raise annual sugar production beyond two million metric tonnes through 13 projects, compared with the country’s estimated yearly consumption of 1.8 million tonnes.
The Executive Secretary of the council, Mr Kamar Bakrin, disclosed that the initiative would require an estimated 7.1 billion dollars over 10 years to achieve the country’s self-sufficiency target.
Bakrin spoke during a media parley with members of the Commerce and Industry Correspondents Association of Nigeria in Abuja. He explained that the programme would involve expanding the operations of existing sugar producers alongside the development of 10 proposed new projects.
According to him, the three existing operators are targeting a combined annual production of about 1.2 million tonnes, while the proposed estates are expected to supply an additional 835,000 tonnes when fully operational.
The programme is also expected to generate 110,000 direct and indirect employment opportunities, sustain more than one million livelihoods and save approximately 2.1 billion dollars in foreign exchange annually when fully implemented.
Bakrin said the country’s efforts to achieve sugar self-sufficiency were not new, noting that the Nigeria Sugar Master Plan was introduced in 2013 to encourage local production, attract investments and reduce dependence on imported raw sugar.
He added that the council had subsequently extended the programme, with the current phase focusing on faster implementation and achieving self-sufficiency by 2033.
Despite investments by major industry players, Nigeria’s domestic sugar output has remained considerably below consumption levels, forcing the country to rely heavily on imports to meet the needs of its manufacturing sector.
A report released in April 2025 by the United States Department of Agriculture’s Foreign Agricultural Service identified Nigeria as the second-largest importer of raw sugar in sub-Saharan Africa, behind South Africa.
The report projected a 12 per cent rise in raw sugar imports during the 2025/2026 marketing year, driven by anticipated growth in consumption and improved access to foreign exchange.
It also estimated that sugarcane farming would increase to 100,000 hectares within the period, supported by ongoing investments from government and private sector operators.
For Bakrin, closing the production gap goes beyond announcing new projects or attracting investors. He said it would require consistent funding, stronger institutions and effective execution.
In August 2026, he identified poor implementation as one of the major obstacles that had hindered progress in the sugar industry.
“We don’t lack policy. What we have struggled with is world-class execution,” he said.
To address the challenge, the council is working to strengthen project development and financing through a N10 billion Sugar Project Acceleration Fund established in partnership with the Bank of Industry.
The facility is expected to finance feasibility studies and other preparatory activities, enabling proposed sugar estates to become viable projects capable of attracting long-term investments.
The council has also announced a one-billion-dollar engineering, procurement, construction and financing arrangement with Chinese industrial group SINOMACH.
The agreement is expected to provide funding opportunities for sugar development projects that satisfy the necessary implementation conditions and achieve financial close.
Bakrin has repeatedly stressed the importance of long-term financing, explaining that sugar production requires substantial capital for land development, irrigation systems, processing plants and supporting infrastructure.
During discussions on a proposed financing partnership between the NSDC and the Nigerian Export-Import Bank in February 2026, he maintained that achieving self-sufficiency would require more than short-term funding.
“The sector requires long-tenor financing deployed at scale and supported by policy certainty,” he said.
The Federal Government is equally seeking to increase production among existing operators through the Backward Integration Programme, which connects access to sugar import privileges with commitments to invest in local manufacturing.
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During a visit to the Golden Sugar Company complex in Sunti, Niger State, in April, the Minister of State for Industry, Sen. John Enoh, challenged the company to raise its annual production to 300,000 tonnes by 2030.
While recognising the company’s achievements, Enoh observed that its current output remained below the expectations of the programme.
“We are not there yet, but there is commitment; there is push, and the government itself is serious about industrialisation,” he said.
The Group Chief Executive Officer of Golden Sugar, Mr Boye Olusanya, disclosed that the company had cultivated approximately 6,600 hectares of sugarcane and was producing about 20,000 tonnes of sugar annually.
He said the company intended to increase production to 290,000 tonnes by 2030, highlighting the significant expansion required from existing industry operators.
Beyond large-scale plantations, the NSDC is also working to bring smallholder farmers into the sugar production value chain through its Sugarcane Outgrower Development Programme.
Bakrin said the initiative was targeting 11,000 hectares of farmer-managed sugarcane plantations around existing processing facilities, with 7,000 hectares already identified in collaboration with partners in Kwara, Niger and Adamawa states.
He explained that the programme was expected to generate approximately 880,000 tonnes of sugarcane annually while providing additional income opportunities for rural farming communities.
According to him, the initial 1,320 hectares would be cultivated by 2027, with arrangements underway to guarantee markets for participating farmers.
However, smallholder sugarcane farmers continue to face several obstacles, including inadequate funding, limited access to improved seedlings, poor irrigation facilities, insufficient technical assistance and weak connections to industrial processors.
A 2025 report by a local publication highlighted the concerns of farmers in Kaduna State, who complained about inadequate government assistance and the absence of dependable links to sugar processing companies.
Some of the farmers said they were compelled to sell their produce to informal traders because they lacked direct access to industrial buyers, thereby reducing the financial benefits of their farming activities.
The United States Department of Agriculture also observed that industrial sugarcane cultivation in Nigeria was largely concentrated around commercial plantations connected to major processing companies, while a significant proportion of sugarcane grown elsewhere was mainly used for chewing.
This means that expanding industrial sugar production would require more farmers to cultivate appropriate sugarcane varieties under arrangements that guarantee access to processing facilities and reasonable returns on their investments.
To improve productivity, the NSDC is also introducing better planting materials and modern agricultural techniques aimed at reducing the cost of establishing sugarcane farms.
Bakrin said the council had developed seedcane farms and introduced bud-chip technology, which reduces the amount of land needed for nurseries and speeds up the planting process.
He disclosed that the council had built the capacity to produce approximately 30 million seedlings through the technology, while the Nigeria Sugar Institute trained 95 professionals in 2026.
Another important aspect of the initiative is the utilisation of sugarcane for products beyond refined sugar.
Bakrin said the programme would encourage the production of ethanol, animal feed and electricity alongside sugar, creating additional sources of revenue for investors and contributing to energy generation.
Such integrated operations could make sugar estates more financially sustainable, particularly where electricity and other by-products can be supplied to local markets.
Nigeria’s experience in the sector has also raised questions about accountability and the enforcement of existing policies.
Industry observers note that the Backward Integration Programme was introduced to compel companies benefiting from sugar import arrangements to invest in domestic production. However, the country’s continued dependence on imported sugar suggests that the policy has yet to deliver the desired level of local supply.
The NSDC says it is strengthening its monitoring and enforcement mechanisms to ensure that operators fulfil their commitments and that proposed investments translate into functioning facilities and increased production.
Under the latest initiative, progress will be assessed through measurable indicators, including the number of hectares cultivated, factories completed, processing capacity installed, financing secured and annual sugar output achieved.
The success of the programme will also depend on sustained cooperation among state governments, financial institutions, processors, farmers and host communities.
Ultimately, Nigeria’s renewed drive towards sugar self-sufficiency will be measured not by the number of projects announced or agreements signed, but by the volume of sugar produced locally and the country’s ability to consistently meet its domestic demand.
NAN
