Nigeria’s drive towards sugar self-sufficiency could save the country about one billion dollars in foreign exchange annually and create approximately 110,000 direct jobs, as the National Sugar Development Council (NSDC) seeks to deepen local production and strengthen links with the beverage industry.
The Executive Secretary and Chief Executive Officer of the NSDC, Kamar Bakrin, disclosed this at the 32nd Nigerian Economic Summit, during a panel session on “Strengthening Policy Coordination for the Non-alcoholic Drink Sector Competitiveness.”
Bakrin said the economic reforms introduced by President Bola Tinubu had improved the attractiveness of local sugar production, creating opportunities to reduce import dependence, attract investment and expand employment, particularly in rural communities.
He said the next priority was to translate macroeconomic stability into inclusive growth, with the sugar value chain offering opportunities to address unemployment, rural livelihoods, food security and foreign exchange pressures.
“Our most pressing priorities are well known: jobs, especially for young people; rural livelihoods; security, pressure on foreign exchange; food security; and the cost of living,” the NSDC chief said.
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Under the Nigeria Sugar Master Plan 2.0, the council is pursuing domestic sugar self-sufficiency, with projected benefits extending beyond sugar production to infrastructure development, renewable energy and agricultural livelihoods.
Bakrin explained that sugar and beverages should be considered parts of a single value chain, given that the beverage industry is Nigeria’s largest industrial consumer of sugar.
“The gains go beyond the factory gate. Sugar estates bring roads, schools, clinics and electricity generated from bagasse, the fibre left after cane is crushed. Sugarcane is also a source of fuel ethanol, bio-electricity and biodegradable packaging, which links to the circular-economy agenda this session is discussing,” he said.
He stated that investors were already responding to the opportunities, with brownfield investors committing to deliver 1.22 million metric tonnes of sugar annually by 2030, two years ahead of the master plan’s 2032 timeline.
A pipeline of greenfield projects is expected to contribute an additional 830,000 metric tonnes annually by 2030.
However, Bakrin stressed that sustaining investment would require predictable government policies, given the long gestation period and substantial capital commitments associated with sugar estates.
“A sugar estate takes at least four years from land clearing to full production, with capital committed long before the first tonne is sold. Investors therefore look for stable demand and a predictable policy environment,” he said.
While acknowledging the government’s public-health objective of addressing non-communicable diseases, Bakrin maintained that health priorities and industrial development could be pursued together.
“We are not asking anyone to choose between health and industry,” he said, urging policymakers to assess the implications of fiscal and regulatory decisions on jobs, investment and the implementation of the Nigeria Sugar Master Plan before introducing measures affecting the sugar and beverage value chain.
He also called on beverage manufacturers to support domestic production through local purchasing commitments, assistance to outgrower farmers, market data and investment in the Backward Integration Programme.
“When Government protects the conditions for demand, and industry commits to local supply, the whole value chain grows, and the jobs stay in Nigeria,” he said.
Bakrin further recommended that the Nigeria Industrial Policy Sectoral Competitiveness and Growth Initiative adopt alignment with the Sugar Master Plan as one of its performance measures, stressing that coordinated growth across the sugar and beverage industries would strengthen Nigeria’s economic prospects.
“When the sugar sector and the beverage sector grow together, Nigeria wins: on jobs, on foreign exchange, and on rural prosperity,” he concluded.
