Nigerian Governors Target Sugar Projects to Drive Industrial Growth, Self-Sufficiency

News in brief:

-Nigerian governors plan to prioritise sugar projects to cut imports and expand domestic production.

-The NGF and NSDC will support states to develop investor-ready sugar projects nationwide.

State governors across Nigeria have agreed to prioritise sugar development projects as part of efforts to boost industrial growth, reduce reliance on imports and achieve national self-sufficiency in sugar production.

According to a statement issued by the National Sugar Development Council (NSDC), the Nigeria Governors’ Forum also approved proposals to classify sugar projects as priority beneficiaries in engagements with development partners within and outside the country.

Imports Reduction and Local Production Expansion

The decision followed a request by the council to halt raw sugar imports, scale up domestic production, create jobs and strengthen Nigeria’s industrial base.

Under the agreement, the governors and the sugar authority will collaborate to support states in developing investor-ready sugar projects capable of attracting private sector investment.

The partnership will focus on facilitating structured engagement between state governments, investors and industry operators, while improving coordination around land access, infrastructure development and incentive frameworks.

Presenting the sector’s investment prospects to NGF officials, Executive Secretary and Chief Executive Officer of the NSDC, Kamar Bakrin, urged them to harness the expanding potential of Nigeria’s sugar industry, which he said is currently valued at approximately $2 billion.

Eleven States Identified for Sugar Production

Bakrin identified Oyo, Kwara, Niger, Nasarawa, Kaduna, Kano, Bauchi, Gombe, Jigawa, Adamawa and Taraba as states with suitable land for profitable sugar production.

He said exchange rate movements have significantly increased the cost of sugar imports, despite relatively stable global prices in dollar terms, making locally produced sugar more commercially viable due to its largely naira-denominated inputs.

Bakrin added that Nigeria has strong operational fundamentals for sugar production, with about 1.2 million hectares of prime land suitable for large-scale sugarcane cultivation. He also noted that only about 200,000 hectares would be required to achieve national self-sufficiency in sugar.

“Critical factors have created an opportunity to invest in Nigeria’s sugarcane growing and processing industry,” he said.

According to Bakrin, Nigeria’s sugar industry could rise to a $7 billion valuation across Africa under the African Continental Free Trade Area (AfCFTA). He added that the domestic market for sugar by-products alone is valued at about US$10 billion.

Governors Pledge Stronger Focus on Sugar Investments

The Director-General of the Nigeria Governors’ Forum, Dr Abdulateef Shittu, stated that many state governments are already engaged or eager to participate in sugar-related investments, covering land development, agricultural schemes, and agro-industrial initiatives.

However, he noted that unlocking the sector’s full potential requires effective coordination, credible investment frameworks and strong alignment between federal policies and state-level development priorities.

Shittu pledged the commitment of the NGF secretariat to ensure that state development strategies increasingly focus on sugar projects, citing their capacity to drive rural development and create sustainable employment.