NSDC, New Operators Seal Landmark Development Agreements, to Produce 400,000MT of Sugar Annually

The National Sugar Development Council (NSDC) has signed agreements with four operators to develop greenfield sugar projects that will collectively produce 400,000 tones annually, marking the latest phase in an ambitious campaign to slash the country’s hefty sugar import bill and achieve domestic self-sufficiency.

Four operators will each develop 100,000-tonne facilities across Nigeria’s agricultural belt: Brent Foods in Oyo State, Niger Foods in Niger State, Legacy Sugar in Adamawa State, and UMZA in Bauchi State. The geographic spread from Nigeria’s southwest to northeast reflects a deliberate strategy to leverage diverse agricultural conditions and distribute economic benefits across regions.

The agreements, signed at NSDC’s Abuja headquarters, represent a significant scaling of Nigeria’s sugar development ambitions. Under the terms, the council will provide customised project development support and cover critical service costs to ensure the ventures achieve commercial viability.

This expansion builds on Nigeria’s increasingly aggressive approach to sugar sector development. The NSDC recently signed a memorandum of understanding with a Chinese firm for engineering, procurement, construction and financing (EPC-F) services to construct up to five sugar estates, representing a collective investment of $1 billion. This Chinese partnership underscores Nigeria’s willingness to leverage foreign expertise and capital to rapidly develop domestic capacity.

The strategic imperative is clear: Nigeria currently imports the vast majority of its sugar requirements, creating a substantial drain on foreign exchange reserves that the government is eager to plug. The country’s sugar import bill has remained stubbornly high despite various policy interventions, making domestic production expansion a priority for economic planners seeking to improve the trade balance.

The Executive Secretary/CEO of the Council, Mr. Kamar Bakrin, has designated 2025 as a year of “accelerated development” for sugar projects, reflecting the government’s urgency in addressing food security concerns and reducing import dependence. Mr. Bakrin argues that structural changes in global commodity markets have made local production more commercially attractive than at any point in the industry’s history, presenting a window of opportunity for rapid capacity expansion.

The four new projects promise benefits beyond mere production targets. Each facility is expected to generate significant employment in predominantly rural areas, develop local infrastructure, and create upstream and downstream economic opportunities. The geographic spread across Oyo, Niger, Adamawa and Bauchi states also reflects a deliberate strategy to distribute economic benefits and reduce regional inequalities.

The success of these latest ventures will depend heavily on the NSDC’s ability to provide effective project support and the operators’ capacity to execute complex agricultural-industrial projects.

The initiative represents part of Nigeria’s broader industrial policy push under President Bola Tinubu’s administration, which has prioritised import substitution and local value addition across key sectors. With Africa’s largest economy facing persistent foreign exchange shortages and mounting pressure to diversify away from oil dependence, agricultural processing industries like sugar have gained renewed policy attention.

The new capacity would represent a notable expansion of domestic production capabilities in a country of over 200 million people with growing consumption patterns. The projects also align with continental trade initiatives under the African Continental Free Trade Area, potentially positioning Nigeria as a regional sugar hub for West African markets in the history of the industry.