Nigeria: NSDC sees $2 billion opportunity in Nigeria’s sugar industry
Nigeria’s NSDC has urged state governments to tap into the $2-billion domestic sugar industry, citing rising import costs and stronger economics for local production. With multiple states suited for cane cultivation, the sector offers major investment potential in sugar, by-products and agro-industrial development under AfCFTA.
The National Sugar Development Council (NSDC) has called on state governments to take advantage of the growing opportunities in Nigeria’s sugar industry, which it said is now valued at about $2 billion, Daily Trust reported.
In a statement issued on Sunday, the NSDC said its Executive Secretary and Chief Executive Officer, Kamar Bakrin, made the appeal during a meeting with the leadership of the Nigeria Governors’ Forum (NGF). He urged states to actively support and participate in sugar project development.
Bakrin identified Oyo, Kwara, Niger, Nasarawa, Kaduna, Kano, Bauchi, Gombe, Jigawa, Adamawa and Taraba as states with suitable land for profitable sugar production.
He said that while global sugar prices have remained largely steady in dollar terms, changes in exchange rates have made sugar imports more costly. This, he said, has improved the business case for locally produced sugar, as most production inputs are priced in naira.
Bakrin said these conditions have created strong opportunities for investment in Nigeria’s sugarcane farming and processing sector. He added that the industry is currently valued at $2 billion and could reach $7 billion across Africa under the African Continental Free Trade Agreement. He also said the market for sugar by-products alone is estimated at $10 billion in Nigeria.
Speaking at the meeting, NGF Director-General Abdulateef Shittu said many state governments are already involved, or are interested in getting involved, in sugar-related investments, including land development, farming programmes and agro-industrial projects.
He said that fully realising these opportunities would require better coordination, clear investment plans and strong alignment between federal policies and state development goals.
The NGF secretariat, in response, agreed to give priority to sugar as a key product to help speed up industrial development across states in the country.
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Source : Chinimandi
