NSDC Signs Agreement with Four New Operators to Boost Annual Sugar Production by 400,000 Metric Tonnes

The National Sugar Development Council (NSDC) has taken another major step toward strengthening Nigeria’s sugar industry by signing agreements with four new operators to collectively produce 400,000 metric tonnes of sugar annually. The initiative is part of the Federal Government’s broader strategy to achieve self-sufficiency in sugar production, reduce import dependence, and stimulate economic growth through the Backward Integration Programme (BIP).

The agreements, signed at the NSDC headquarters in Abuja, bring additional private-sector players into the country’s sugar value chain, increasing production capacity while also creating opportunities for employment and rural development. According to the council, the deal will complement existing investments in sugar estates and processing facilities, as well as support the National Sugar Master Plan (NSMP), which aims to achieve full domestic production of sugar and its by-products by 2030.

Executive Secretary of the NSDC, Mr. Kamar Bakrin, stated that the new operators had successfully met the technical and financial requirements to participate in the country’s sugar development programme. He explained that each of the companies will establish fully integrated sugar estates, including plantations, mills, and refineries, with the goal of adding significant capacity to Nigeria’s production base.

Bakrin emphasised that the council remains committed to working closely with all stakeholders to ensure that production targets are met and that the benefits of the programme extend beyond sugar output. He noted that the agreements are designed to create thousands of direct and indirect jobs, improve rural infrastructure, and provide training opportunities for farmers and factory workers.

The new investments, he added, are also expected to help Nigeria reduce its sugar import bill, which currently stands at hundreds of millions of dollars annually. By producing more sugar locally, the country will conserve foreign exchange, strengthen its food security, and position itself to export to neighbouring markets in the long term.

Representatives of the four new operators expressed optimism about the partnership, highlighting their readiness to commit substantial resources to ensure the projects’ success. They pledged to adopt modern farming techniques, efficient milling technologies, and environmentally friendly practices to meet both local and international quality standards.

Industry experts have welcomed the development, describing it as a positive sign of growing investor confidence in Nigeria’s agribusiness sector. They pointed out that while Nigeria has the potential to be a leading sugar producer in Africa, the sector still faces challenges such as inadequate infrastructure, limited access to irrigation, and fluctuations in global commodity prices.

To address these issues, the NSDC has assured that it will continue to engage relevant government agencies, financial institutions, and development partners to provide supportive policies, funding mechanisms, and technical assistance. Bakrin also noted that the council is exploring ways to strengthen research and development efforts to improve sugarcane varieties, enhance yields, and ensure consistent supply to mills.

The Backward Integration Programme, introduced as part of the NSMP, has already attracted billions of naira in investments from existing sugar producers. Under the programme, licensed operators are required to invest in local production, rather than relying on imports, in exchange for access to market incentives and regulatory support.

With the inclusion of the four new operators, Nigeria’s total projected sugar production capacity is expected to rise significantly in the coming years, moving the country closer to its self-sufficiency target. The NSDC believes that if all licensed operators fully implement their commitments, Nigeria could not only meet its domestic demand but also become a net exporter of sugar.

Bakrin reaffirmed the council’s commitment to ensuring compliance with agreed timelines and production milestones, stressing that monitoring and evaluation will be a continuous process. He warned that operators who fail to meet their obligations risk losing their licences, as the government is determined to achieve tangible results in the shortest possible time.

Beyond production, the NSDC is also prioritising the development of downstream industries that rely on sugar as a key input, such as confectionery, beverages, and pharmaceuticals. Officials believe that boosting domestic sugar production will help these industries access raw materials at more competitive prices, improve profitability, and create more jobs across the manufacturing sector.

Looking ahead, the council has urged Nigerians to support the “Buy Nigerian” initiative by choosing locally produced sugar over imported brands. It also called on state governments in sugar-producing regions to provide enabling environments for investors, including land access, infrastructure development, and security.

 

With the latest agreements in place, the NSDC is optimistic that Nigeria’s sugar sector will witness accelerated growth, benefiting farmers, processors, and consumers alike. The council sees this as a critical milestone in the journey toward making the country self-reliant in sugar production and a competitive player in the global sugar market.