NSDC targets 2m tonnes annual sugar production with $7.1bn 10-year programme

The National Sugar Development Council (NSDC) has unveiled a pipeline of 10 greenfield sugar projects expected to deliver 835,000 metric tonnes (MT) of sugar annually at full capacity.

The projects form a central part of the council’s $7.1 billion, 10-year programme to raise Nigeria’s annual sugar production beyond 2 million MT and save about $2.1 billion in foreign exchange every year.

Speaking at the weekend while hosting the new leadership of the Commerce and Industry Correspondents Association of Nigeria (CICAN), the Executive Secretary of the NSDC, Kamar Bakrin, outlined the council’s strategy for achieving sugar self-sufficiency through expanded production, new investments and improved productivity.

He said the 10 greenfield projects had moved beyond concept, with credible promoters identified for all 10 projects, while 143,478 hectares of land had been secured.

Bakrin explained that the projects have 55,500 TCD of planned milling capacity.

“Each estate is designed to produce sugar, ethanol, and power to ensure they meet bankable standards. All the projects are undergoing independent technical reviews.

“The greenfield projects are one of three key interventions anchoring the program. The others are optimizing existing estates and accelerating the expansion of incumbent operators. Together, the three are designed to close the production gap.”

He noted that the country has existing estates with a capacity of about 100,000 MT annually, adding that incumbent operators have a capacity of over 1.22 million MT annually, equivalent to about two-thirds of current national demand.

“Ten greenfield estates has the production capacity of about 835,000 MT annually at full capacity. Combined, 13 projects are projected to produce more than 2 million MT of sugar yearly, above current domestic demand.”

The Executive Secretary stated further that the council is also working with farmers around existing mills to increase cane supply, with 11,000 hectares targeted for farmer-grown sugarcane.

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“So far, 7,000 hectares (64 percent of the target) have been identified with partners in Kwara, Niger, and Adamawa. The initiative is expected to supply 880,000 MT of cane to existing mills and produce about 88,000 MT of sugar annually.

“The 10-year program requires $7.1 billion, made up of $5 billion in debt and $2.1 billion in equity. The debt component is expected to come from Export credit agencies with a share of about $3 billion, Development finance institutions: $1.75 billion and Local development finance institutions: $250 million.

“To address the sector’s shortage of quality planting materials and technical expertise, the Council has strengthened the Nigeria Sugar Institute (NSI), to provide training and extension services, planting materials and project evaluation and estate support.

“Successful implementation will deliver benefits well beyond sugar production. The Council is moving from policy commitments to measurable implementation, with estate performance to be monitored physically and through satellite technology,” he stated.