Nigeria’s Sugar Ambitions Sweeten Rural Economies as Out-Grower Scheme Pays Farmers Over N1bn Annually
Nigeria’s Federal Government, through the National Sugar Development Council (NSDC), has announced that the out-grower scheme under the Nigerian Sugar Master Plan now supports 535 farmers with annual payments exceeding N1bn. Outlined in a recent report by the NSDC, this scheme is one of several initiatives under the master plan aimed at steering the nation towards sugar self-sufficiency while energising rural economies.
The Nigerian Sugar Master Plan, conceived in 2008 under federal directive, set a roadmap to elevate domestic sugar production. Speaking to senior journalists in Lagos, NSDC Executive Secretary Kamar Bakrin lauded the initiative’s successes, highlighting the growth in the total installed capacity of Nigeria’s refineries, now reaching three million metric tonnes. Bakrin underscored that the government’s efforts have attracted investments worth $1bn, established a network of greenfield projects, and developed the Nigerian Sugar Institute to drive research and technical advancement in the sector.
“Sugar is a vital economic asset that catalyses industrialisationand economic development,” Bakrin noted. “The sugar cane industry sustains livelihoods and promotes secondary industries such as transport, equipment manufacturing, and retail, which, in turn, drive investment in rural infrastructure like roads, power, education, and healthcare.”
According to Bakrin, the council is intensifying efforts to achieve self-sufficiency within eight years by ramping up domestic production, securing tailored funding, and expanding the out-grower scheme to support commercial sugar cane farming. “We are raising appropriate funding with the right terms to drive capacity, scaling up by encouraging new entrants, both local and global, and cultivating commercial sugar cane growers,” Bakrin explained.
With an annual market valued at $2bn and access to a $7bn African market, Nigeria’s sugar industry is poised for growth. The country’s exchange rate has made local production more economically viable than imports, while government incentives continue to bolster investor interest. Bakrin highlighted that sugar production also opens the door to high-value by-products such as ethanol, bioplastics, and packaging materials, ensuring that the sector remains sustainable and future-proof through its community-focused development model.
“We are fostering an environment where the economics are compelling—high returns on investment are achievable, access to land is secure, and global expertise is available to support these projects,” Bakrin said. “There’s a strong policy framework in place, and the government remains committed to ensuring that legislation is favourable for investment. With these pillars, the NSDC is well on its way to meeting its ambitious goal of making Nigeria self-sufficient in sugar production.”
As Nigeria strives for sugar independence, the NSDC’s commitment to the local economy and infrastructure ensures that this vision is not only about self-sufficiency but about transforming rural communities and building a resilient sugar sector for the future.
