Nigeria’s effort to deepen domestic sugar production has received a fresh push following the establishment of a N10 billion Sugar Project Acceleration Fund (SPAF) designed to support new sugar estates and processing facilities across the country.
The National Sugar Development Council (NSDC) and the Bank of Industry (BOI) jointly unveiled the facility, known as SPAF, during an interactive session with promoters of prospective greenfield sugar projects.
Officials explained that the intervention is intended to help project developers prepare bankable proposals capable of attracting large-scale financing and accelerating the emergence of a sustainable and competitive sugar industry in Nigeria.
Speaking during the engagement, Kamar Bakrin, Executive Secretary and Chief Executive Officer of the NSDC, emphasised that the biggest obstacle to expanding Nigeria’s sugar production is not necessarily the lack of funding but the absence of well-prepared projects capable of meeting investor expectations.
Bakrin stated that development finance institutions and private investors already control significant pools of capital earmarked for agro-industrial investments, including food system projects across Africa.
“Here is a reality that every serious project promoter knows. Capital availability, on its own, will not result in sugar production. Development finance institutions manage billions of dollars in agro-industrial finance and are under pressure to deploy capital, while investors are actively seeking credible opportunities in African food systems,” Bakrin said.
According to him, many sugar projects struggle to secure financing because promoters often fail to present properly structured proposals supported by adequate documentation and credible risk-mitigation frameworks.
“The constraint is not the availability of money. It is the availability of projects that are structured, documented and de-risked to the standard required to receive financing,” he said.
Bakrin explained that the newly created SPAF was designed specifically to address this structural challenge by helping developers bring their projects to a stage where lenders and investors can confidently provide capital.
He described the initiative as a structured pre-investment facility that will provide technical, financial and advisory support to qualified project promoters.
“SPAF is NSDC’s structured pre-investment facility established to provide qualifying project promoters with the technical, financial and advisory support required to develop their projects to bankable standard. It is not a grant programme but a facility designed to build a credible pipeline of investor-ready Nigerian sugar projects,” Bakrin added.
Providing further clarification on the implementation framework, Hadiza Shuaib, Executive Director of Public Sector and Intervention Programmes at the BOI, said the bank will serve as the fund manager for the facility while the National Sugar Development Council will provide sector leadership and technical direction.
Shuaib noted that the programme goes beyond simple credit support by incorporating strong capacity development elements intended to ensure long-term viability of the projects that benefit from the fund.
“As Fund Manager, BOI will ensure that projects are properly structured, risks are effectively managed, and funds are deployed responsibly. We are also strong advocates for skills development, because financing alone is not sufficient to deliver sustainable outcomes,” she said.
She further outlined the responsibilities of the BOI under the arrangement, which include credit appraisal, risk management, loan disbursement, monitoring and evaluation of projects, as well as the eventual closure of accounts upon full repayment of financing.
According to Shuaib, eligibility for the facility will be limited to enterprises engaged in sugar or closely related activities within the value chain.
Participants at the interactive session included promoters of several prospective greenfield sugar ventures such as Illaj Sugar, Brent Foods, Crystal Sugar, Legacy Sugar, Saro Sugar, Awaa, Ganic and Confluence Sugar.
The engagement formed part of ongoing efforts by the NSDC and the BOI to stimulate large-scale investment in Nigeria’s sugar sector and reduce the country’s heavy dependence on imported sugar.
