The Nigerian government, through the National Sugar Development Council (NSDC), is actively inviting both local and foreign investors to tap into the country’s sugar industry, emphasizing its substantial domestic demand and the opportunity to share in Africa’s $7 billion sugar export market.
Kamar Bakrin, NSDC’s Executive Secretary and CEO, revealed during a recent business session in Lagos that Nigeria’s sugar consumption reaches about two million metric tonnes annually, with an estimated market value of $2 billion. Bakrin underscored the sector’s profitability, citing a strong and growing domestic market. “The existence of a large and growing domestic demand makes this business viable and profitable,” he stated.
In addition to meeting local needs, Bakrin noted that Nigeria’s sugar industry is poised to address demand across Africa, where the export market potential stands at $7 billion. He also highlighted the competitive advantage local production gains from currency fluctuations, which make domestic sugar increasingly attractive over imports.
“The economics are compelling, with high Net Present Value and Internal Rate of Return at attainable scale, and available financing that aligns with business needs,” Bakrin explained.
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He affirmed the government’s commitment to the sugar sector through supportive policies and incentives in line with NSDC’s Backward Integration Plan. To further strengthen stability, NSDC has introduced a community integration model encouraging companies to invest in local development projects like schools, clinics, and roads, while also prioritizing local hiring for managerial roles.
Bakrin highlighted the potential for high-value by-products such as ethanol, bioplastics, and packaging materials, which can help diversify and boost the local economy. With 2025 declared as the “year of acceleration” for the sugar industry, the NSDC is focused on expanding local production, enhancing training, developing local varieties, and promoting best practices.
As these developments unfold, Nigeria’s sugar industry is gearing up for a surge in investment that could reshape its position in local and African markets, paving the way for substantial economic growth and job creation.
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