The Federal Government of Nigeria has urged local and international Investors to take advantage of the sugar industry’s new opportunities, valued at $2 billion. Kamar Bakrin, Executive Secretary and CEO of the National Sugar Development Council (NSDC) emphasised that the country’s yearly sugar consumption ranges from about 1.4 to 1.6 million metric tonnes, resulting in a notable market for domestic production. Moreover, the region depends on Brazilian sugar imports, which account for about 96 percent of its total demand. So Bakrin underscored the necessity of shifting to domestic production, stabilising supply, and strengthening the Economy in response to currency fluctuations that increase import expenses.
Furthermore, Bakrin’s Investment initiative at the NSDC seeks to engage investors, emphasising the potential amidst increasing domestic demand for sugar and its associated products. He noted that the financial benefits of shifting to local Manufacturing are important, presenting favourable Net Present Value (NPV) and Internal Rate of Return (IRR) at suitable production levels. To encourage investment, financial structures tailored to business requirements are being organised to promote production projects in the country. Under the Federal Government’s Backward Integration Plan (BIP), policies and incentives are being developed to make the region self-sufficient in production and to stimulate economic expansion.
New policies and incentives are being developed under the BIP.
This initiative intends to reduce reliance on imports by motivating businesses to set up or invest in domestic production plants instead of depending entirely on foreign sources. The system aims to develop an independent industrial sector in essential sectors, promoting sustainable employment and minimising foreign exchange outflow. The BIP tackles major economic vulnerabilities by strengthening domestic businesses and facilitating direct investments, encouraging enduring stability and progress. In addition to promoting domestic production, the NSDC has implemented a Community Engagement model that requires companies to contribute to regional development efforts, creating a collaborative environment.
Also, this structure mandates that operators of projects engage in community-enhancing activities, such as constructing educational facilities, healthcare centres, and roadways, while prioritising residents for managerial roles. This strategy promotes the industry’s sustainable health while encouraging community support. Kamar Bakrin emphasised the NSDC’s goal to seize a bigger portion of the $7 billion African sugar market. In addition to refining the product, the Council is dedicated to unlocking value from promising byproducts like ethanol, bioplastics, and Packaging solutions. This strategy will enable Nigeria to satisfy local needs and enhance its African stature.
NSDC has set 2025 as the year for accelerating sector development.
Looking ahead, the NSDC has designated 2025 as a pivotal year for “acceleration,” committing to raising funds to enable local and global investors to expand their presence in the sector. The government’s investment plan also aligns with the ten-year extension of the National Sugar Master Plan (NSMP), implemented initially to drive industry development and achieve self-sufficiency in its production. Under the renewed NSMP, Nigeria aims to produce 1.7 to 1.8 million metric tonnes annually by 2033. This would eliminate the need for about $350 million in yearly imports and mark a significant stride towards self-reliance.
Moreover, the anticipated advantages of these efforts are notable. By 2033, the NSMP has the potential to generate as many as 110,000 employment opportunities throughout different phases of its production value chain. Ranging from Agriculture to processing, the expansion of this sector can increase livelihoods for rural populations, improve food availability, and drive economic progress on local and national levels. As a result, BIP is an essential approach to decreasing the dependence on foreign products by enhancing local manufacturing abilities.
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Specifically, within the sector, the BIP promotes the establishment of plantations, processing facilities, and associated Infrastructure in the country instead of relying predominantly on imported. By driving local production, the BIP seeks to create a self-sufficient industry that meets the high demand for the product. This move is especially important since most products are imported from other countries. Therefore, in Nigeria’s current challenging economy, characterised by currency instability, inflation, and high unemployment, the BIP is more than just an industrial policy; it is a lifeline to economic resilience.