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China has taken another significant step in expanding its economic footprint in Africa by sealing a $1 billion deal with Nigeria for a large-scale sugarcane cultivation and processing project.

• China and Nigeria signed a $1 billion deal for a large-scale sugarcane cultivation and processing project
• The project is expected to boost Nigeria's sugar industry and enhance China's strategic presence in Africa
• The agreement aims to attract up to $1 billion in investments and create thousands of jobs while stimulating rural infrastructure development

The National Sugar Development Council (NSDC) and Chinese conglomerate SINOMACH have signed an agreement to jointly develop the project, which is expected to boost Nigeria’s sugar industry while enhancing Beijing’s strategic presence on the continent.

In an interview with the News Agency of Nigeria (NAN), NSDC Executive Secretary, Mr. Kamar Bakrin, revealed that the agreement is set to attract up to $1 billion in investments.

He emphasized that the project is one of the early outcomes of the Nigeria-China Strategic Partnership, championed by President Bola Tinubu.

Under the terms of the Memorandum of Understanding (MoU), SINOMACH will construct a sugar processing plant and establish a sugarcane plantation with an initial annual processing capacity of 100,000 metric tonnes. The long-term goal is to increase production to one million metric tonnes annually.

While business giants like Dangote and the BUA Group have dominated the sector, one critical aspect has been missing—domestic production.

Bakrin highlighted that the project is expected to create thousands of jobs, stimulate rural infrastructure development, conserve foreign exchange, and serve as a model for Nigeria’s broader industrialisation efforts.

"This partnership with SINOMACH is unique. It combines engineering, procurement, and construction (EPC) with development financing—an essential model for agro-industrial transformation," he said.

Nigeria’s sugar revolution

The Nigerian government has, over the years, taken several steps to open up and industrialize the nation's sugar industry.

While business giants like Dangote and the BUA Group have dominated the sector, one critical aspect has been missing—domestic production. There has been little focus on establishing large-scale sugarcane farms and reducing the heavy reliance on imported raw materials used in sugar manufacturing.

To address this issue, the Nigerian government launched the Nigeria Sugar Master Plan (NSMP) in 2012, under the National Sugar Development Council (NSDC). The NSMP was a 10-year policy framework aimed at reversing the trend by promoting backward integration—encouraging refineries to invest in local production.

However, despite these efforts, progress has been slow, and Nigeria continued to import over 90% of its sugar needs as recently as 2020.

This stagnation can be attributed to infrastructure gaps, bureaucratic hurdles, and the complex political economy of sugar subsidies and import waivers.

Nigeria’s sugar demand—estimated at over 1.5 million metric tonnes annually—continues to grow due to population increases and rising industrial needs, particularly in the food and beverage sectors.

This highlights the immense growth potential within the sector, and if harnessed properly, it could create thousands of jobs across farming, processing, logistics, and research.