Nigeria is mobilising an investment pipeline of about $1 billion to accelerate domestic sugar production and reduce its dependence on imports, the National Sugar Development Council (NSDC) said. The initiative is anchored by a $1 billion engineering, procurement and construction-plus-finance partnership with China’s SINOMACH, alongside a ₦10 billion Sugar Project Acceleration Fund established with the Bank of Industry. Nigeria consumes about 1.8 million metric tonnes of sugar a year and currently spends roughly $1 billion annually on imports, according to the NSDC.

The programme forms part of the Nigeria Sugar Master Plan 2.0, which aims to raise local production to about 2 million tonnes annually. The ₦10 billion fund will finance feasibility studies and project preparation, helping turn undeveloped, or “greenfield”, sugar estates into investment-ready projects. The government is also working with the Nigeria Governors’ Forum and the African Export-Import Bank to accelerate the development of sugar estates. The partnership with SINOMACH is expected to support large-scale sugarcane cultivation and processing, with the Chinese group previously agreeing to develop a plant and plantation whose initial capacity was set at 100,000 tonnes, with a long-term target of up to 1 million tonnes.

Beyond sugar production, Nigerian authorities are seeking to develop a broader sugarcane-based industrial value chain, including ethanol, animal feed and electricity generation. The strategy is also aimed at retaining more foreign exchange within the Nigerian economy, creating jobs and increasing rural incomes. However, the scale-up faces significant challenges: USDA forecasts for 2025/26 put Nigeria’s sugar production at less than 5% of consumption, while high planting and irrigation costs, inadequate infrastructure and limited investment continue to constrain the sector. The new investment drive therefore represents an attempt to move the country’s long-standing sugar self-sufficiency policy from planning to large-scale implementation.