The National Sugar Development Council (NSDC) has unveiled plans for 10 new sugar estates projected to produce 835,000 metric tonnes of sugar annually at full capacity, as Nigeria intensifies efforts to achieve self-sufficiency and reduce dependence on imports.
The projects form part of the council’s $7.1 billion, 10-year Sugar Self-Sufficiency Programme, which aims to raise domestic sugar production above two million metric tonnes annually, exceeding Nigeria’s current estimated demand of 1.8 million metric tonnes.
NSDC Executive Secretary and Chief Executive Officer, Mr. Kamar Bakrin, disclosed the development during a presentation to the new leadership of the Commerce and Industry Correspondents Association of Nigeria (CICAN), who paid him a courtesy visit.
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Bakrin said that the programme would combine the development of new estates with improvements in existing facilities and the expansion of established operators.
According to the council, credible promoters have been identified for all 10 greenfield projects, while 143,478 hectares of land have been secured. The projects have a combined planned milling capacity of 55,500 tonnes of cane per day, with each estate designed to produce sugar, ethanol and electricity.
The projects are undergoing independent technical reviews to establish their viability and meet bankability requirements before implementation.
The council’s production strategy also includes optimising existing estates, expected to contribute about 100,000 tonnes annually, and expanding incumbent operators, whose combined output is projected at 1.22 million tonnes annually.
Together, the three interventions are expected to deliver more than two million tonnes of sugar each year through 13 projects.
To strengthen the supply of sugarcane, the NSDC is also working with farmers around existing mills, targeting 11,000 hectares for farmer-grown sugarcane. Of this area, 7,000 hectares, representing 64 percent of the target, have been identified with partners in Kwara, Niger and Adamawa states.
The initiative is expected to supply 880,000 tonnes of sugarcane to existing mills annually and generate approximately 88,000 tonnes of sugar.
Financing the 10-year programme will require $7.1 billion, comprising $5 billion in debt and $2.1 billion in equity. Proposed debt sources include export credit agencies, expected to provide about $3 billion; development finance institutions, $1.75 billion; and local development finance institutions, $250 million.
The NSDC has also strengthened the Nigeria Sugar Institute to address shortages of technical expertise and quality planting materials. The institute will provide training, extension services, planting materials, project evaluation and support for estate development.
Beyond reducing sugar imports, the programme is projected to save Nigeria approximately $2.1 billion in foreign exchange annually, create 110,000 direct and indirect jobs, and improve the livelihoods of more than one million people across the value chain.
The council also projects that the initiative could more than double the gross domestic product of host communities over 10 years and reduce annual emissions by about two million metric tonnes of carbon dioxide equivalent.
To track implementation, the NSDC said that estate performance would be monitored through physical inspections and satellite technology.
The success of the programme will depend on mobilising the required capital, completing the technical assessments, developing the estates and ensuring consistent sugarcane supplies. Achieving the production target would mark a significant step towards reducing import dependence, conserving foreign exchange and strengthening Nigeria’s domestic agro-industrial value chain.
