Nigeria has received a $1 billion investment to increase the nation’s sugar output self-sufficiency through cooperation with the Chinese corporation SINOMACH.
A Memorandum of Understanding (MoU) with the National Sugar Development Council (NSDC) formalises the partnership, centring on establishing a large-scale sugarcane farming and processing enterprise in Nigeria.
NSDC Executive Secretary Mr Kamar Bakrin revealed this during an interview with the News Agency of Nigeria (NAN) in Abuja on Sunday.
He noted that the agreement is expected to attract investments worth up to $1 billion and represents one of the early outcomes of the Nigeria-China Strategic Partnership championed by President Bola Tinubu.
According to the Memorandum of Understanding (MoU), SINOMACH will construct a sugar processing plant and develop a sugarcane plantation with an initial annual processing capacity of 100,000 metric tonnes, aiming for a long-term target of one million metric tonnes.
Bakrin described the agreement as a strategic milestone in Nigeria’s pursuit of self-sufficiency in sugar production. “2025 is a pivotal year for Nigeria, and we must make bold moves towards food security and economic self-sufficiency,” he said.
He explained that the project is expected to create thousands of jobs, stimulate rural infrastructure development, conserve foreign exchange, and serve as a model for Nigeria’s broader industrialisation efforts.
“This partnership with SINOMACH is unique. It combines engineering, procurement, and construction (EPC) with development financing, an essential model for agro-industrial transformation,” he added.
He said NSDC will provide full support to ensure a smooth project takeoff, including facilitating approvals, land acquisition, and other necessary authorisations.
Also speaking, the Vice President of SINOMACH, Mr. Li Yu, praised Nigeria’s implementation of the Nigeria Sugar Master Plan (NSMP), referring to it as a “sweet revolution” that aligns with the goals of food sovereignty and economic dignity.
“We believe this partnership will not only boost Nigeria’s sugar self-sufficiency but also promote rural development, create employment, and enhance agricultural modernisation,” Li said.
He also revealed that SINOMACH is exploring RMB-based financing models to fund the project, an approach expected to reduce financing costs and speed up approval processes in China.
Li expressed optimism about the project’s long-term impact, stating that the selected host state could emerge as the “Sugar Bowl of West Africa.”
Decree 88 of 1993 established the National Sugar Development Council (NSDC), which was later changed in 2015 and is currently known as Act Cap—no. 78 LFN of 2004.
Its primary goal is to propel the growth of Nigeria’s sugar sector to achieve at least 70% self-sufficiency in sugar output as quickly as feasible. To increase foreign exchange revenues, the council also plans to present Nigeria as a country that exports sugar.
The ineffective planning and coordination in the sugar subsector prompted the creation of NSDC. Before its establishment, sugar development initiatives were mishandled, which limited the industry’s ability to support Nigeria’s industrial and economic expansion.
Source: Nairametrics
Image Credit: The Whistler Newspaper
