Nigeria is targeting annual foreign exchange savings of 2.1 billion dollars through domestic sugar and fuel ethanol production under a 7.1-billion-dollar investment plan aimed at achieving self-sufficiency in sugar production within 10 years.
The Executive Secretary of the the National Sugar Development Council NSDC, Kamar Bakrin, disclosed this at a press briefing, where he outlined a strategy to increase domestic sugar production beyond two million metric tonnes annually through 13 projects involving three existing operators and 10 proposed new investments.
Bakrin said the programme would also create about 110,000 direct and indirect jobs, improve rural economies and reduce greenhouse gas emissions by approximately two million tonnes of carbon dioxide equivalent annually.
“When Nigeria grows and processes its own sugar cane, four national priorities move forward together. First, we keep our foreign exchange,” he said.
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On the state of the industry, he disclosed that Nigeria consumes approximately 1.8 million metric tonnes of sugar annually, with more than 97 per cent refined from imported raw sugar.
He stated that the country’s two existing mills, produced about 27,000 metric tonnes in the last production season.
Bakrin attributed the persistent production gap to unfavourable production economics, weak accountability for investment commitments, inadequate financing and limited access to improved sugarcane varieties and planting materials.
“The diagnosis is done. We know why the gap has persisted, and every cost now has a fix in our revised plan,” he said.
“Today, every sugar estate’s performance is verified on the ground and by satellite, and we are working with the federal government to put commitment on a firmer footing,” Bakrin said.
As part of its immediate interventions, the Council is targeting 11,000 hectares of farmer-grown sugarcane under its Outgrower Development Programme to supply existing sugar mills.
Bakrin disclosed that 7,000 hectares had already been identified with partners in Kwara, Niger and Adamawa states, while the first 1,320 hectares were expected to be cultivated by next year.
He explained that the initiative is expected to increase domestic sugar production to about 100,000 metric tonnes, approximately four times the previous output.
The NSDC boss also disclosed that the Council is also working with three existing operators targeting a combined annual production capacity of approximately 1.2 million metric tonnes with expansion plans to cultivate about 107,000 hectares of sugarcane and increasing processing capacity at their factories.
In addition, Bakrin revealed that 10 proposed greenfield projects across eight states are expected to contribute approximately 835,000 metric tonnes of sugar annually at full capacity.
Bakrin said 1.2 million hectares of land had been validated for sugar production, compared with the estimated 250,000 hectares required to achieve national self-sufficiency.
“Land is not a constraint for sugar in Nigeria,” he said, adding that the proposed estates would also produce ethanol and power to diversify revenue streams and improve their financial viability.
On financing, Bakrin disclosed that the Council had signed a one-billion-dollar agreement with Chinese firm SINOMACH for engineering, procurement, construction and financing.
“A 10-billion-naira Sugar Project Acceleration Fund, established with the Bank of Industry, is also expected to support feasibility and bankability studies for proposed projects.” He added.
