Nigeria’s Sugar Industry Seeks Investors for $7bn Expansion Opportunity
The Nigerian government, through the National Sugar Development Council (NSDC), has issued a call to investors to capitalize on Nigeria’s high sugar demand and the substantial export market across Africa, valued at $7 billion. The NSDC’s Executive Secretary and CEO, Kamar Bakrin, underscored the lucrative potential of the sector, noting that Nigeria’s annual demand for sugar sits at two million metric tonnes, positioning the domestic market at approximately $2 billion.
Bakrin highlighted that the evolving economic landscape—particularly currency fluctuations—has made local production more competitive, creating a prime opportunity for investment. “The economics are compelling, with strong Net Present Value and Internal Rate of Return for those achieving scale, as well as financing options well-suited to the sector’s needs,” he stated during a session with business editors in Lagos.
The government, Bakrin explained, is committed to supporting the industry through favourable legislation, incentives, and a community-centric integration model. This model, aimed at ensuring industry stability, requires operators to invest in local infrastructure and reserve managerial roles for community members, fostering inclusive growth. “This framework ensures sustainable benefits for communities, contributing to a secure and enduring industry,” Bakrin said.
To accelerate growth, the NSDC has declared 2025 as a pivotal “year of acceleration” for the sugar sector, prioritizing initiatives in local production, training, and best practices. Bakrin also noted the potential for diversifying high-value products derived from sugar, such as ethanol, bioplastics, and packaging materials, which could bring significant value to the Nigerian economy.
“We are advancing measures to boost local production,” Bakrinaffirmed. “By strengthening capacity and driving innovation, we aim to transform Nigeria into a sugar industry leader within the continent, benefiting both investors and the communities that support them.”
