FG targets $7.1bn sugar investments, 110,000 jobs in 10 years

The Federal Government is targeting $7.1 billion in investments in the sugar industry over 10 years to boost domestic production above two million metric tonnes annually, create 110,000 jobs and save $2.1 billion in foreign exchange annually.

The programme, coordinated by the National Sugar Development Council (NSDC), is aimed at reducing Nigeria’s dependence on imported raw sugar through increased sugarcane cultivation, processing capacity and private-sector investment.

Executive Secretary of NSDC, Kamar Bakrin, disclosed the plan in Abuja, saying the initiative would strengthen local production and supporting agricultural infrastructure.

Under the programme, the council is proposing 10 integrated sugar estates across Niger, Kwara, Oyo, Kaduna, Jigawa, Bauchi, Nasarawa and Adamawa states. The estates are expected to cover 143,478 hectares, with a combined milling capacity of 55,500 metric tonnes of sugarcane daily.

According to NSDC, the proposed estates could produce 835,000 metric tonnes of sugar annually, while existing operators are expected to contribute another 1.22 million tonnes through increased output.

The projects are also expected to support ethanol production and electricity generation, creating additional opportunities for agro-processing and value addition.

To finance the programme, the council is seeking $5 billion in long-term debt and $2.1 billion in equity contributions from investors. Funding is expected to involve export credit agencies, development finance institutions and local financial organisations.

NSDC also disclosed a $1 billion agreement with Chinese engineering company Sinomach, although the associated financing arrangements are yet to be completed. It is collaborating with the Bank of Industry on a proposed N10 billion Sugar Projects Acceleration Fund to support feasibility studies and prepare projects for investment.