Market News

The Federal Government, through its National Sugar Development Council, has called on local and foreign investors to seize the opportunities in Nigeria’s sugar sector, noting its significant local demand and the $7bn African export market.

The Executive Secretary and Chief Executive Officer of NSDC, Kamar Bakrin, said Nigeria’s annual sugar demand sits at approximately two million metric tonnes, valuing the local market at about $2bn, during a recent session with business editors in Lagos.

“The existence of a large and growing domestic demand makes this business viable and profitable,” Bakrin said.

He further stated that with Africa’s expansive export market, valued at $7bn, Nigeria is positioned to serve both local and continental markets.

The NSDC boss stressed that recent currency fluctuations have made local sugar production more competitive while presenting challenges for importers.

“The economics are compelling with high Net Present Value and Internal Rate of Return at attainable scale, and available financing that matches the business need,” Bakrin remarked.

He highlighted the Federal Government’s commitment to supporting investments through favourable legislation and a strong incentive framework, which aligns with the NSDC’s Backward Integration Plan.

At the event, Bakrin introduced a community integration model to ensure sustainability and stability in the industry.

He explained that under the model, sugar project operators must allocate part of their investments to local development initiatives, such as schools, clinics, and roads, and reserve managerial job quotas for community members.

“This model ensures all stakeholders at the community level benefit, making the industry more secure and sustainable,” he said.

Bakrin also highlighted the diversity of high-value products that the sugar subsector can produce, including ethanol, bioplastics, and packaging materials, which would add further value to the local economy.

The NSDC announced it has declared 2025 as ‘the year of acceleration’ for the sugar sector, committing to raising the necessary funding and supporting the entry of both local and global investors.

“We are taking deliberate action to accelerate local production… We are also upgrading capacity for training manpower, creating local varieties, and driving best practices,” Bakrin added.