Business & Economy

FG Unveils Plan to Boost Sugar Production, Attracting Investors for 2025 Growth

Published

9 hours ago

Mar 17, 2025.

With Nigeria being the second-largest sugar market in sub-Saharan Africa, after South Africa, the increased demand for sugar-intensive items in the bakery, confectionery, pharmaceuticals, dairy, and soft drinks sectors has contributed to the expansion of sugar consumption in the country.
The pharmaceutical market alone is projected to reach $5.13 billion, driven by the production of dry syrups, enhancement of drug texture, and advancements in drug formulation.
Four vessels have delivered a total of 210,454 tonnes of raw sugar to the Lagos Port terminals this week

As the Federal Government rolls out a comprehensive plan to accelerate sugar project development in 2025, investors are expected to grow production by 9.4% from $1.84 billion in 2024 to $2.03 billion in 2025.

Eko Hot Blog reports that with Nigeria being the second-largest sugar market in sub-Saharan Africa, after South Africa, the increased demand for sugar-intensive items in the bakery, confectionery, pharmaceuticals, dairy, and soft drinks sectors has contributed to the expansion of sugar consumption in the country.

EDITOR’S PICK

NYSC Summons Corps Member For Criticizing Tinubu
70 – Year Wait Ends as Newcastle Defeat Liverpool 2-1 to Lift Carabao Cup at Wembley
No Plan To Impeach Fubara – Rivers APC

The pharmaceutical market alone is projected to reach $5.13 billion, driven by the production of dry syrups, enhancement of drug texture, and advancements in drug formulation.

Meanwhile, four vessels have delivered a total of 210,454 tonnes of raw sugar to the Lagos Port terminals this week.

According to the Nigerian Ports Authority (NPA) Shipping Position, Greenview Development Nigeria Limited (GDNL) will take delivery of 48,000 tonnes from Alkyoni and 49,000 tonnes from Sea Diamond 1.

Tian Tan Shan and Aeposs have already docked at the Apapa Bulk Terminal Limited (ABTL) to offload 56,727.33 tonnes each.

FG Unveils Plan to Boost Sugar Production, Attracting Investors for 2025 Growth

However, the Executive Secretary and CEO of the National Sugar Development Council (NSDC), Mr. Kamar Bakrin, recently disclosed the council’s 2025 plans to the House of Representatives Committee on Industry.

Bakrin emphasized that certain loopholes in the establishment law must be addressed before the 2025 plans and Nigeria Sugar Master Plan (NSMP) II can be successfully achieved.

Despite the challenges, Nigeria’s total installed capacity for sugar refineries has increased to three million metric tonnes, enabling self-sufficiency in refined sugar production and securing a stable supply for the domestic market.

Bakrin noted that the Backward Integration Programme (BIP) under the NSMP has attracted $1 billion in investments from major stakeholders.

These investments have led to the creation of over 15,000 permanent and seasonal jobs, acquisition of over 180,000 hectares of land, cultivation of 13,000 hectares of cane, and the establishment of cane processing factories with a combined capacity of 18,000 TCD in five active project sites.

He said: “Our focus in 2024 has been on resetting the agenda and realigned the industry to the high expectations of Nigerians. For us, 2025 is the year of acceleration.

This is not a choice but a must, given our macroeconomic realities and the tremendous benefits we know are possible from the cultivation and processing of sugarcane.

“Our key priorities for 2025 are to accelerate to pace of project development; facilitate investment of $5 billion into the sector; ensure our priority green field projects are ready for investment and strengthen NSDC’s capacity to develop the sector.

We have set out the initiatives to be executed in 2025 that will drive the realisation of these objectives. “One of these key initiatives is the amendment of the NSDC Act to address loopholes created by conflicting policies and codify its market protection provisions.

This is a key requirement that emerges in all our conversations with our current and potential investors and financiers.

As usual, we shall be counting on the House Committee for your guidance and support in making this happen in 2025.”

The Executive secretary outlined the fundamental issues impeding investment in the sector and highlighted the threefold objectives of the Nigeria Sugar Master Plan II (NSMP II).

FG Unveils Plan to Boost Sugar Production, Attracting Investors for 2025 Growth

These objectives are aimed at achieving self-sufficiency in sugar production, fostering a globally competitive sector, and establishing a cost-effective and inclusive sugar industry in Africa.

To accomplish these goals, the NSMP II will rely on seven pillars that emphasize sustainable practices and strategic partnerships.