By Ahmed Ahmed
Nigeria’s drive to reduce sugar imports has received a boost with the commissioning and test-running of a 300-tonnes-per-day sugar factory in Iseyin, Oyo State, following more than a decade of public-sector support and investment.
The National Sugar Development Council (NSDC) described the development as a milestone under the Nigeria Sugar Master Plan and its Backward Integration Programme, which seeks to expand domestic sugar production through local sugarcane cultivation and processing.
The NSDC Executive Secretary and Chief Executive Officer, Kamar Bakrin, said the factory, operated by Oyo Sugar and Derivatives Industries Limited (OSDL), was among the greenfield sugar mills developed under the programme. He explained that the project had evolved from a cooperative farming initiative into an industrial facility capable of processing sugarcane.
The transition is significant for an industry that has historically relied heavily on imported raw and refined sugar. Expanding local production could strengthen domestic value addition, create a market for farmers and reduce dependence on foreign supplies.
According to Bakrin, the NSDC financed the procurement of the factory’s core sugar mill at approximately N1.64 billion. Its total financial commitment later increased to about N2.2 billion to support sugarcane development and operational activities. The Oyo State Government also contributed an estimated N850 million in equity funding towards completing outstanding works.
The investment highlights the capital and institutional support required to move agricultural production into industrial processing. It also demonstrates the importance of collaboration among government agencies, state authorities, private investors and farming communities in developing Nigeria’s sugar value chain.
Bakrin attributed the factory’s readiness to sustained contributions from the NSDC, the Oyo State Government, OSDL and local farmers.
For the surrounding communities, the project could create opportunities across sugarcane cultivation, aggregation, processing and distribution. However, the factory’s long-term viability will depend on a reliable supply of cane, efficient operations, adequate infrastructure and commercially sustainable demand.
Recognising these requirements, Bakrin said the council would remain involved as OSDL transitions from test-running to full-scale commercial production.
“Our work does not end here. The NSDC will remain engaged as OSDL moves into full-scale commercial production, and we expect this project to serve as proof that Nigeria’s sugar sector can be built on locally grown cane,” he said.
The transition from commissioning to consistent production will be critical. A factory’s installed capacity does not automatically translate into actual output. Sustained operations will require sufficient sugarcane from surrounding farms, effective coordination with farmers, access to working capital and a market capable of supporting production costs.
For Oyo State, the facility offers an industrial outlet for agricultural production. For Nigeria’s sugar industry, it represents an effort to connect local farming with processing and retain more economic value within the country.
Ultimately, the significance of the Iseyin factory will depend on its ability to sustain commercial operations, support farmers and contribute meaningfully to domestic sugar supply. Its success could demonstrate how investment in local raw materials and processing infrastructure can help build a more resilient sugar industry and advance Nigeria’s import-substitution ambitions.
