Mr. Kamar Bakrin, Executive Secretary of the National Sugar Development Council (NSDC), has announced that Nigeria’s sugar market is valued at over $2 billion. 

He noted that the African market is worth $7 billion, and due to increasing demand and supply gaps, the continental deficit is projected to be 13 million tons by 2030.

Bakrin made these remarks during a courtesy visit from Dr. Faruk Rabiu Mudi, President of the All Farmers Association of Nigeria (AFAN). 

He stressed that now is the ideal time to invest in sugar production, urging AFAN members and potential investors to capitalise on the significant opportunities within Nigeria’s sugar sector.

He called on stakeholders to support the national initiative to decrease reliance on imported raw sugar and its by-products. 

According to Bakrin, local sugar production is an economic necessity and a lucrative venture with strong government backing, promising market returns.

He noted that current consumption rates, foreign exchange challenges, and global supply chain uncertainties have made local production more appealing. 

Bakrin shared that the NSDC has identified a land bank of 150,000 hectares suitable for sugarcane cultivation, located in secure areas with favourable climates and community backing.

He outlined four key factors creating compelling investment opportunities in sugarcane growing and processing: attractive markets, operational feasibility, sound economics, and sustainable business practices. 

The Council aims to address production deficits through a commercial outgrower initiative, targeting at least 50,000 hectares of land.

In addition, Bakrin revealed a comprehensive support package under the Nigeria Sugar Master Plan (NSMP II) to reduce investment risks. 

This plan includes access to the Nigeria Sugar Industry Development Fund, import tariffs on equipment, a five-year tax holiday, and guaranteed offtake agreements with sugar processors.

“We are not just inviting investors; we are providing the tools, capital, and partnerships for their success,” Bakrin stated. 

He also noted that sugarcane processing offers various by-product opportunities, enhancing profitability and sustainability.

Despite having 19 sugar-producing countries, Africa remains a net importer of sugar. 

Bakrin believes the African Continental Free Trade Area (AfCFTA) presents Nigerian producers with a unique chance to access regional markets with fewer trade barriers, positioning Nigeria as a cost leader in sugar production.

Source: Independent

Image Credit: Punch