By Ahmed Ahmed
T
he Nigerian Export-Import Bank (NEXIM Bank) and the National Sugar Development Council (NSDC) have announced a strategic partnership aimed at transforming Nigeria’s sugar sector through long-term, large-scale financing. The collaboration seeks to mobilise capital for viable sugar projects and expand Nigeria’s capacity to meet domestic and regional demand.
The partnership, formalised at a recent meeting in Abuja, will employ the Engineering, Procurement, Construction plus Financing (EPC+F) model to fund projects aligned with national sugar policies. Under this framework, NSDC will originate and develop policy-aligned, bankable projects while supporting equity mobilisation. NEXIM Bank will anchor capital mobilisation by providing access to international Export Credit Agencies, coordinating syndication with Development Finance Institutions, facilitating foreign input financing, and offering guarantees and risk insurance.
NSDC Executive Secretary and CEO, Mr. Kamar Bakrin, highlighted the sector’s untapped potential, noting that Nigeria’s sugar market is valued at around $2 billion, while Africa’s overall market stands at $7 billion. He emphasised that sugar by-products alone in Nigeria exceed $10 billion in market value. According to Bakrin, achieving self-sufficiency in sugar production requires patient, long-tenor financing deployed at scale.
“Nigeria is well-positioned to serve both domestic and regional markets under the African Continental Free Trade Area, provided long-term, appropriately priced capital is deployed to scale production,” Bakrin said. He added that the EPC+F model is already being tested through a partnership with SINOMACH, with up to $1 billion structured at SOFR plus three percent, featuring a 15-year tenor and a three-year moratorium.
The initiative is projected to deliver substantial economic benefits. It is expected to generate annual foreign exchange savings of approximately $300 million, create more than 50,000 jobs, and achieve up to 25 percent import substitution within five to ten years. Bakrin noted that projects will integrate smallholder farmers through outgrower schemes and prioritise host community participation. Environmentally sustainable practices, including ethanol and bioelectricity production, are also central to the plan.
To de-risk investments, NSDC is working to codify the Nigeria Sugar Master Plan into law to ensure policy continuity and strengthen enforcement measures to curb smuggling. This legal framework will provide investors with confidence that projects are protected from sudden policy shifts.
In response, NEXIM Managing Director, Mr. Abba Bello, welcomed the initiative, describing the sugar sector as “a critical pillar in Nigeria’s drive for economic diversification and non-oil export expansion.” He highlighted the bank’s commitment to providing the necessary financial structures to unlock the sector’s potential for growth and regional competitiveness.
Industry analysts believe the partnership could mark a turning point for Nigeria’s sugar industry, which has long relied on imports to meet domestic demand. If successfully implemented, the EPC+F model could position the country as a major sugar producer in Africa, boosting local production, supporting rural livelihoods, and generating significant foreign exchange savings.
The collaboration reflects a growing focus on leveraging public-private partnerships to drive economic transformation. With coordinated financing, policy support, and investment protection, the NSDC-NEXIM initiative offers a blueprint for large-scale agricultural development that aligns with Nigeria’s broader economic goals.
