The Nigeria Governors’ Forum (NGF) has agreed to prioritise sugar as a strategic product for accelerating industrial development across states, signalling renewed subnational support for Nigeria’s drive toward sugar self-sufficiency.
The forum also resolved to classify sugar projects as priority beneficiaries in its engagements with development partners, both locally and internationally.
The resolutions followed formal requests by the National Sugar Development Council (NSDC), in line with its mandate to develop the sugar sector, halt the importation of raw sugar, create jobs, and achieve national self-sufficiency in sugar production.
As part of the decision, the NGF agreed to partner with the NSDC to support states in preparing investor-ready sugar projects, facilitate structured engagement between state governments, investors and industry operators, and strengthen coordination around key enablers such as land access, infrastructure provision and incentive frameworks.
Presenting the proposals to the NGF leadership, the Executive Secretary and Chief Executive Officer of the NSDC, Mr Kamar Bakrin, outlined what he described as vast investment opportunities in Nigeria’s sugar sector.
He called on governors of sugarcane-viable states, through the NGF, to embrace sugar project development.
Mr Bakrin identified 11 states with proven suitable land for profitable sugar production as Oyo, Kwara, Niger, Nasarawa, Kaduna, Kano, Bauchi, Gombe, Jigawa, Adamawa and Taraba.
He said recent macroeconomic developments have strengthened the competitiveness of local sugar production.
“While global sugar prices have remained relatively stable in dollar terms, exchange rate movements have made imports significantly more expensive, thereby enhancing the commercial viability of domestically produced sugar, whose inputs are largely naira-denominated,” he said.
According to him, Nigeria now has strong operational fundamentals for sugar production, with assessments identifying about 1.2 million hectares of prime land suitable for large-scale sugarcane cultivation nationwide, even though only 200,000 hectares are required to achieve self-sufficiency.
“The availability of suitable land, water resources, labour, and policy incentives positions Nigeria favourably for large-scale sugar investments,” Mr Bakrin stated.
He further noted that these factors have opened significant investment opportunities in sugarcane growing and processing, placing the sector’s value at $2 billion in Nigeria and $7 billion across Africa under the African Continental Free Trade Agreement.
He added that the market for sugar by-products alone is valued at $10 billion in Nigeria.
Addressing concerns about host communities, Mr Bakrin said, “The Nigerian sugar industry does not displace communities; instead, it integrates them into the value chain as partners, workers, and stakeholders through outgrower schemes and employment opportunities.”
He added, “Sugarcane projects will empower host communities, promote inclusive development, and support environmental sustainability.”
Citing commercial viability, he referenced a model sugar project producing 100,000 metric tonnes annually, requiring an estimated investment of about $250 million and delivering an internal rate of return of approximately 24 per cent, alongside a positive net present value.
He noted that such projects also generate by-products including ethanol and bio-electricity, further improving returns and sustainability.
Also speaking, the Director-General of the NGF, Dr Abdulateef Shittu, said several state governments are already engaged or interested in sugar-related investments spanning land development, agricultural schemes and agro-industrial initiatives.
However, he noted that unlocking the full potential of the sector requires effective coordination, credible investment frameworks and strong alignment between federal policies and state development priorities.
Dr Shittu pledged the commitment of the NGF secretariat to ensure that state-level development priorities increasingly focus on sugar project investments, particularly for their capacity to drive rural development and create jobs.