NSDC Seals Deal with Operators, to Produce 400,000MT Sugar Annually
Sunday Ehigiator
Nigeria’s National Sugar Development Council (NSDC), has signed agreements with four operators to develop greenfield sugar projects that will collectively produce 400,000 tones annually, marking the latest phase in an ambitious campaign to slash the country’s hefty sugar import bill and achieve domestic self-sufficiency.
A statement yesterday from NSDC revealed that the four operators will each develop 100,000-tonne facilities across Nigeria’s agricultural belt: Brent Sugar in Oyo State, Niger Foods in Niger State, Legacy Sugar in Adamawa State, and UMZA in Bauchi State. The geographic spread from Nigeria’s southwest to northeast reflects a deliberate strategy to leverage diverse agricultural conditions and distribute economic benefits across regions.
“The agreements, signed at NSDC’s Abuja headquarters, represent a significant scaling of Nigeria’s sugar development ambitions. Under the terms, the council will provide customised project development support and cover critical service costs to ensure the ventures achieve commercial viability.
“This expansion builds on Nigeria’s increasingly aggressive approach to sugar sector development. The NSDC recently signed a memorandum of understanding with a Chinese firm for engineering, procurement, construction and financing (EPC-F) services to construct up to five sugar estates, representing a collective investment of $1 billion. This Chinese partnership underscores Nigeria’s willingness to leverage foreign expertise and capital to rapidly develop domestic capacity,” he said.
“The strategic imperative is clear: Nigeria currently imports the vast majority of its sugar requirements, creating a substantial drain on foreign exchange reserves that the government is eager to plug. The country’s sugar import bill has remained stubbornly high despite various policy interventions, making domestic production expansion a priority for economic planners seeking to improve the trade balance.
“Executive Secretary Kamar Bakrin has designated 2025 as a year of ‘accelerated development’ for sugar projects, reflecting the government’s urgency in addressing food security concerns and reducing import dependence. Bakrin argues that structural changes in global commodity markets have made local production more commercially attractive than at any point in the industry’s history, presenting a window of opportunity for rapid capacity expansion,” he said.
The four new projects, he added, promise benefits beyond mere production targets.
