Nigeria Boosts Sugar Production With New Agreements For 400,000 Tonnes Annually.
The National Sugar Development Council (NSDC) has signed landmark agreements with four operators to develop greenfield sugar projects, set to produce a combined 400,000 tonnes of sugar annually. The announcement, made by NSDC Executive Secretary Kamar Bakrin on Tuesday, 12 August 2025, marks a significant step in Nigeria’s quest to reduce its substantial sugar import bill and achieve self-sufficiency in sugar production.
The agreements, finalised at the NSDC’s headquarters in Abuja, involve four operators—Brent Sugar in Oyo State, Niger Foods in Niger State, Legacy Sugar in Adamawa State, and UMZA in Bauchi State—each tasked with developing a 100,000-tonne sugar facility. The strategic spread across Nigeria’s agricultural belt, from the southwest to the northeast, is designed to leverage diverse agricultural conditions and distribute economic benefits across regions. Bakrin noted that the initiative aligns with the government’s broader industrial policy under President Bola Tinubu, which prioritises import substitution and local value addition.
Nigeria currently spends over N2.2 trillion on sugar imports over a five-year period, according to the National Bureau of Statistics, placing significant pressure on foreign exchange reserves. The NSDC’s latest move is part of an ambitious campaign to curb this reliance, with Bakrin designating 2025 as a year of “accelerated development” for the sugar sector. The council will provide tailored project support and cover critical service costs to ensure the ventures achieve commercial viability.
The projects are expected to deliver far-reaching benefits beyond production targets. Each facility is anticipated to create substantial employment opportunities, particularly in rural areas, while fostering infrastructure development and stimulating upstream and downstream economic activities. The geographic distribution also aims to reduce regional inequalities, aligning with Nigeria’s broader economic goals.
This initiative builds on recent efforts to bolster the sugar industry, including a $1 billion memorandum of understanding with a Chinese firm for engineering, procurement, construction, and financing services to develop up to five sugar estates. Bakrin highlighted that shifts in global commodity markets have made local sugar production increasingly viable, presenting a timely opportunity for Nigeria to expand its domestic capacity.
While the agreements signal a bold step forward, challenges remain. Previous attempts to boost local sugar production have faced hurdles such as infrastructure constraints and competition from subsidised imports. The success of these ventures will hinge on the NSDC’s ability to provide effective support and the operators’ capacity to execute complex agricultural-industrial projects. Nevertheless, the initiative positions Nigeria to potentially become a regional sugar hub under the African Continental Free Trade Area, enhancing its role in West African markets.
The NSDC’s efforts reflect a renewed focus on agricultural processing as a means to diversify Nigeria’s economy, reduce dependence on oil, and address food security concerns for its population of over 200 million. With sustained commitment, these projects could transform the nation’s sugar industry and deliver lasting economic benefits.