Nigeria : FG moves to be self-sufficient in sugar production
Nigeria’s \$2 billion sugar market is gaining momentum as the government launches Nigeria Sugar Master Plan II (NSMP II), aiming to boost local production, cut imports, and drive industrialization. The plan targets 161 million liters of ethanol, 400 MW of power, and 11.6 MMT of animal feed, while expanding 50,000 hectares of sugarcane farms.
Nigeria’s $2 billion sugar market is drawing renewed attention from investors, with the Federal Government doubling down on its Nigeria Sugar Master Plan II (NSMP II) — a bold strategy aimed at transforming the country from a heavy importer into a self-sufficient sugar powerhouse.
The second phase of the master plan, launched to drive industrialization and reduce Nigeria’s reliance on sugar imports, sets ambitious goals: producing 161 million liters of ethanol, generating 400 megawatts of electricity, and creating 11.6 million metric tons of animal feed — all while drastically increasing domestic sugar production.
At the heart of the strategy is the expansion of 50,000 hectares of commercial sugarcane farms, with a focus on brownfield projects, which account for nearly 70 per cent of the anticipated production.
These involve scaling up operations at existing sugar estates, while greenfield projects are also being considered to attract over $4 billion in investment.
According to Dr. Jide Abiona, an agricultural economist at University of Lagos, “Nigeria’s sugar plan goes beyond food—it’s about creating a value chain for energy, employment, and industrial raw materials. With the right implementation, this could transform rural economies.”
Ironically, Nigeria’s sugar push comes at a time when global sugar prices are crashing, thanks to an anticipated supply glut. Last Friday, New York and London sugar futures fell to four-year lows, driven by bumper harvest projections from major producers.
The US Department of Agriculture (USDA) forecasts global sugar output for 2025–2026 to hit 189.3 million metric tons (MMT)—a 4.7 per cent year-on-year increase, creating a 7.5 per cent global surplus estimated at 41.2 MMT.
India, the world’s second-largest sugar producer, is expecting a 19 per cent jump in sugar production to 35 MMT, supported by expanded cane acreage and above-average monsoon rainfall, which the Indian Ministry of Earth Sciences forecasted at 105 per cent of the long-term average.
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