MORGANABLE BUSINESS / MARKETS
Nigeria aims to save about $1 billion in foreign exchange each year by producing enough sugar locally. The National Sugar Development Council (NSDC) says the plan could also create approximately 110,000 direct jobs.
Akure —
Nigeria aims to save about $1 billion in foreign exchange each year by producing enough sugar locally. The National Sugar Development Council (NSDC) says the plan could also create approximately 110,000 direct jobs.
It aims to reduce imports, attract investment and strengthen local manufacturing. However, Nigeria must overcome major production challenges before it can achieve these goals.
The NSDC’s Executive Secretary and Chief Executive Officer, Kamar Bakrin, discussed the opportunity at the 32nd Nigerian Economic Summit in Abuja.
He said recent economic reforms had improved the outlook for local sugar production. However, he stressed that the country must turn these gains into investment, jobs and lasting economic benefits.
Nigeria still produces far less sugar than it consumes. The country uses about 1.7 million metric tonnes of sugar each year.
Yet local production was estimated at only 105,000 tonnes in the 2025/26 marketing year, according to the United States Department of Agriculture’s Foreign Agricultural Service. As a result, imports continue to supply much of the domestic market.
This gap creates pressure on foreign exchange because importers need dollars to buy sugar from abroad.
Expanding local production could reduce that demand and keep more money within the country.
It could also help manufacturers manage changes in international prices, shipping costs and exchange rates.
However, the projected $1 billion in annual savings depends on Nigeria achieving sugar self-sufficiency.
The country has not yet reached that point. Therefore, the figure represents a target rather than money already saved. Actual savings will depend on how quickly local producers increase output and meet national demand.
The NSDC is pursuing this goal through the Nigeria Sugar Master Plan 2.0. The strategy aims to expand sugarcane farming, improve processing capacity and attract new investment.
It also seeks to build stronger links between farmers, sugar producers and companies that use sugar in their products.
PRODUCTION TARGETS AND JOB CREATION
Bakrin said investors operating existing facilities have committed to producing 1.22 million metric tonnes of sugar annually by 2030.
This target would bring production forward from the master plan’s original 2032 timeline. Meanwhile, proposed new projects could add another 830,000 tonnes of annual production capacity by 2030.
Together, these commitments could raise annual output to about 2.05 million tonnes. That amount would exceed current consumption estimates.
However, these figures depend on successful project delivery. Investors must complete construction, establish sugarcane farms and operate their factories efficiently before Nigeria can rely on the additional supply.
The council says investors are showing greater interest because of improved economic conditions.
Even so, sugar projects require substantial funding and careful planning. Bakrin noted that a project can take at least four years to move from land clearing to full production.
Investors must therefore commit funds well before their projects begin earning revenue.
Stable government policies will also play an important role. Sudden changes in regulations or market conditions could discourage investors and delay projects.
In contrast, clear policies would help companies plan their spending, manage risks and make long-term commitments.
The proposed expansion could create jobs across the sugar value chain. Workers would be needed to prepare land, plant and harvest sugarcane, operate mills and transport crops.
Local businesses could also benefit from supplying equipment, packaging materials and other services.
The NSDC estimates that sugar self-sufficiency could create approximately 110,000 direct jobs.
Many of these opportunities could emerge in rural communities, where farming and processing facilities may provide new sources of income.
However, the final number will depend on investment, project delivery and the industry’s demand for workers.
Sugar estates could also support community development. The council says these projects can help provide roads, schools, clinics and electricity in host communities.
However, companies and public authorities must work together to deliver these benefits. Local residents should also have fair opportunities to participate in the industry’s growth.
OVERCOMING THE MAIN CHALLENGES
Sugarcane offers benefits beyond sugar production. Mills can use bagasse, the fibrous material left after extraction, to generate electricity.
Sugarcane can also supply raw materials for fuel ethanol and biodegradable packaging. These uses could help producers earn more from each harvest and reduce waste.
The beverage industry is particularly important because it is Nigeria’s largest industrial consumer of sugar.
Bakrin has urged beverage manufacturers to support local production through purchasing agreements, assistance for farmers and better market information. These measures could give producers a more dependable market.
This partnership matters because sugar estates need reliable buyers. If manufacturers continue to depend heavily on imported sugar, local producers may struggle to sell their output.
However, long-term purchasing agreements could encourage farmers and investors to expand production with greater confidence.
Despite these opportunities, Nigeria faces serious barriers. A United States Department of Agriculture report published in March 2026 said local production met less than five per cent of consumption.
The report identified high planting costs, limited private investment and inadequate infrastructure among the challenges facing the industry. Limited support for small-scale farmers also restricts growth.
Nigeria therefore needs more than production targets. Producers require suitable land, reliable water supplies, good transport links and access to long-term finance.
They also need dependable power, skilled workers and efficient processing facilities. Without progress in these areas, locally produced sugar may remain costly or fail to meet demand.
The council is also calling for closer cooperation between government and industry. Bakrin has urged policymakers to consider how tax rules, trade policies and regulations affect investment.
He believes government and businesses must work together to support the sugar master plan and sustain industrial growth.
TURNING PLANS INTO RESULTS
The plan’s success will depend on implementation. Existing operators must meet their production commitments, while new projects must move from proposals to construction and commercial output.
The council must also track progress and ensure that investment promises lead to measurable increases in supply.
For Nigeria, the potential benefits extend beyond lower imports. A stronger sugar industry could create jobs, support farmers and provide more raw materials for manufacturers. It could also open opportunities in electricity generation, fuel production and packaging.
Nevertheless, the $1 billion annual savings target remains an ambition rather than a confirmed result.
Nigeria will need stable policies, sustained investment and effective oversight to achieve it. Producers must also improve output and work closely with manufacturers that buy sugar.
If these efforts succeed, local sugar production could become an important source of employment, industrial growth and foreign-exchange savings.
The country must now turn its commitments into working farms, efficient factories and a reliable domestic supply.
These results will determine whether Nigeria can reduce its dependence on imported sugar and reach its long-term goal of self-sufficiency.
