Mr. Kamar Bakrin, the Executive Secretary/CEO of the National Sugar Development Council (NSDC), urged global and domestic Investors to put money into Nigeria’s sugar sector. He underlined that the industry offers lucrative prospects due to Nigeria’s $2 billion market and rising local demand of over 2 million metric tonnes annually. Furthermore, investors have additional growth potential due to the $7 billion value of the African Export market. Mr. Bakrin emphasised Nigeria’s macroeconomic conditions, especially the advantageous exchange rate, which increases the competitiveness of domestic sugar production while raising the cost of imports.
Land availability, Security in some areas, and international experience assisting local projects make it easier to invest in Nigeria’s sugar industry. Additionally, the Nigerian government is dedicated to investor-friendly policies that support the Backward Integration Plan (BIP) and provides substantial incentives. Through the introduction of a community integration model, Bakrin made sure that projects with set quotas for infrastructure, employment, healthcare, and Education benefited host communities. Additionally, he highlighted the variety of high-value byproducts that may be made from sugar, including bioplastics and ethanol.
2025 as the year of acceleration for sugar development.
Bakrin has spearheaded policies to attain sugar production self-sufficiency within the next eight years after President Bola Ahmed Tinubu appointed him in October. With an emphasis on increasing local output, improving workforce training, and attracting Investment from reputable domestic and international companies, the NSDC has proclaimed 2025 as the year of acceleration for sugar development. The Nigerian government launched the Backward Integration Plan (BIP) as a framework for policies aimed at promoting domestic Manufacturing and lowering dependency on imports.
By encouraging domestic sugar production through investments in sugarcane plantations and processing facilities, BIP seeks to make Nigeria self-sufficient in the sugar sector. The plan provides advantages like land access for sugar operations, Tax reductions, and exemptions from import duties on machinery. A solid and long-term return on investment is secured for investors as a result of increased domestic demand and less competition from imports. Companies like BUA Group and Dangote Sugar Refinery, two of the biggest participants in Nigeria’s sugar business, are examples of successful case studies.
A solid and long-term return on investment is secured for investors.
For example, Dangote Sugar has spent more over $700 million on its integrated sugar project in Adamawa State’s Numan. In addition to providing thousands of jobs for local communities, the project, which spans more than 40,000 hectares of land, intends to produce 1.5 million metric tonnes of sugar annually by 2026. Another example is the $300 million that the BUA Group invested in the Lafiagi Sugar Company in Kwara State. Over 20,000 hectares make up BUA’s integrated sugar mill and plantation project, which is anticipated to produce over 250,000 metric tonnes of sugar yearly and provide Electricity to the national grid through its ethanol byproducts.
However, investing in Nigeria’s sugar industry comes with risks and obstacles despite the opportunities. Inadequate road networks and unstable electrical supplies are two examples of problems that might impede manufacturing and raise operating expenses. The personnel and investments may also be at danger due to Insecurity in some areas of the nation. Variability in the climate also has an impact on sugarcane production. The NSDC has been attempting to improve investors’ access to safe land, especially in areas where instability is less severe, in order to lessen these difficulties.
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Additionally, the Council is working with international partners to develop effective Irrigation systems and advance technical expertise in order to increase resilience to climate hazards. Investor testimonials in Nigeria’s sugar business demonstrate the industry’s long-term advantages. According to Dangote Group chairman Aliko Dangote, “The backward integration policy has significantly reduced the nation’s dependence on sugar imports and is positioning Nigeria as a global player in sugar production.” Our investments support the government’s goals, and we believe the sector has enormous potential for community development and job creation in addition to financial gains.