The federal government has encouraged local and international businesses to enter the country’s $2 billion sugar market. Kamar Bakrin, Executive Secretary and CEO of the National Sugar Development Council (NSDC), made the request, noting that Nigeria consumes between 1.4 to 1.6 million metric tonnes of sugar each year.
Bakrin stated that the NSDC is starting on an investment drive with the goal of drastically reducing Nigeria’s reliance on Brazil, from whom it now imports around 96% of its sugar requirements. According to him, the Nigerian sugar market, worth an estimated $2 billion, is a viable investment opportunity due to strong, growing demand for domestic production.
He also stated that local production becomes even more favourable during currency swings, which make imports expensive, making the change to home manufacture economically feasible. “The economics are compelling, with high Net Present Value and Internal Rate of Return at attainable scale, and available financing that aligns with business needs,” Bakrin told investors.
In accordance with its Backward Integration Plan (BIP), the federal government is actively establishing policies and incentives to encourage domestic production and lessen dependency on imported sugar. The NSDC has implemented a community integration strategy to encourage investment in local development. Sugar project operators must spend in community-level initiatives such as schools, clinics, and road building, while also reserving managerial positions for local individuals.
“This model ensures all stakeholders at the community level benefit, making the industry more secure and sustainable,” says Bakrin. In preparation for expansion, the NSDC has named 2025 as “the year of acceleration,” pledging to raise the finances required to support both local and foreign investors in their endeavours in Nigeria’s sugar sector.
The federal government extended the National Sugar Master Plan (NSMP) for another ten years in 2022, with the goal of producing 1.7 to 1.8 million metric tonnes of sugar per year by 2033, eliminating the $350 million in yearly imports. By 2033, the NSMP is expected to provide 110,000 employment, a significant step towards self-sufficiency and economic growth in Nigeria’s sugar industry.
