NSDC to Integrate Outgrower Farmers into Sugar Supply Chain

The National Sugar Development Council (NSDC) has unveiled plans to integrate more outgrower farmers into Nigeria’s sugar supply chain as part of efforts to strengthen local production and reduce dependence on imported raw sugar.Speaking at a stakeholders’ engagement in Abuja, the Executive Secretary of NSDC, Mr. Kamar Bakrin, said the Council is deepening collaboration with sugar-producing companies and local farmers to ensure that smallholder producers benefit from the country’s expanding sugar value chain.

Bakrin noted that the move aligns with the objectives of the Nigeria Sugar Master Plan (NSMP II), which aims to achieve self-sufficiency in sugar production by 2030. He said that by bringing more outgrower farmers into the fold, the Council hopes to boost domestic cane supply, enhance rural incomes, and stimulate job creation across key producing states.

“Our strategy is to integrate smallholder farmers directly into the operations of major sugar estates through outgrower schemes. This will ensure a consistent supply of sugarcane to processing plants while empowering communities and creating sustainable livelihoods,” Bakrin stated.

He explained that the Council would work with licensed operators such as Dangote Sugar Refinery, BUA Sugar, and Golden Sugar Company, among others, to support farmers with seedlings, fertilizers, and training in modern cultivation techniques. The aim, he said, is to raise productivity per hectare and improve the quality of sugarcane supplied to factories.

According to him, the Council is also developing a framework for financing and market access to help smallholder farmers thrive within the formal sugar value chain. “We are working with financial institutions to provide affordable credit facilities to farmers, while also ensuring guaranteed off-take by the sugar companies,” he added.

Bakrin emphasized that Nigeria’s annual sugar demand currently stands at about 1.7 million metric tonnes, while domestic production remains below 10 percent of that figure. He said the integration of outgrowers is a practical way to close this gap and meet the targets of the NSMP II.

“The success of our sugar policy depends on strong local participation. We must empower Nigerian farmers to be at the center of this transformation,” he said. “The outgrower model has worked in other agricultural sectors like rice and cassava, and we are determined to replicate that success in sugar.”

The NSDC boss further disclosed that the Council has begun monitoring the performance of sugar operators to ensure compliance with backward integration programmes (BIP). He warned that companies failing to meet local production benchmarks could face sanctions or lose incentives provided under the sugar policy.

“We are taking compliance seriously. Any operator who does not show measurable progress in local production will have their import allocation reviewed,” he stated.In addition to the outgrower initiative, Bakrin said the Council is promoting research partnerships with universities and agricultural institutes to improve sugarcane varieties and enhance processing efficiency.

He added that the Council’s approach would help reduce the country’s sugar import bill, save foreign exchange, and contribute to the government’s broader food security agenda.Agriculture experts have commended the NSDC’s renewed focus on smallholder farmers, describing it as a step toward achieving industrial inclusivity and economic diversification.

An agribusiness consultant, Dr. Tunde Aluko, said, “The inclusion of outgrowers in the sugar value chain is vital for sustainable growth. It allows the benefits of industrialization to reach rural communities and ensures a stable raw material base for refineries.”

The NSDC reiterated its commitment to working with state governments, development partners, and the private sector to accelerate investment in irrigation infrastructure, road networks, and rural electrification within sugar-producing clusters.Bakrin concluded by reaffirming that the Council’s long-term vision is to make Nigeria not just self-sufficient in sugar, but also a net exporter in the West African sub-region.