NSDC, BOI Establish N10bn SPAF Fund to Boost Sugar Production

Sunday Ehigiator

The National Sugar Development Council (NSDC) and the Bank of Industry (BOI) have established a N10 billion Sugar Project Acceleration Fund (SPAF) aimed at supporting the development of greenfield sugar projects across Nigeria.

The fund is designed to provide financing and technical support to viable sugar projects, to accelerate the emergence of a sustainable and competitive sugar industry in the country.

The initiative was unveiled during an interactive session hosted by the NSDC, where officials of the council and BOI engaged prospective project promoters who are expected to benefit from the facility.

Speaking at the event, Executive Secretary and Chief Executive Officer of the NSDC, Kamar Bakrin, said the establishment of the fund was informed by the need to help project promoters develop bankable sugar projects capable of attracting large-scale financing.

“Here is a reality that every serious project promoter knows: Capital availability, on its own, will not result in sugar production,” Bakrin said.

He explained that although development finance institutions and impact investors are willing to fund agro-industrial ventures across Africa, many projects fail to attract funding because they are not properly structured or prepared to meet financing standards.

Also speaking, Hadiza Shuaib, who led the BOI delegation to the meeting, said the Bank of Industry would serve as the fund manager for the facility, while the NSDC would provide sector leadership and technical guidance.

She said the bank would be responsible for credit appraisal, risk management, loan disbursement, monitoring and evaluation, as well as account closure after repayment.

“As Fund Manager, BOI will ensure that projects are properly structured, risks are effectively managed, and funds are deployed responsibly. We are also strong advocates for skills development, because financing alone is not sufficient to deliver sustainable outcomes,” she said.