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Home Business & Finance Business

Nigerian Governors prioritise sugar to boost industrial growth

NGF and NSDC collaborate to drive investment and self-sufficiency in sugar production

Peculiar Adirika by Peculiar Adirika
February 2, 2026
in Business, News
0
Governors

Nigeria Governors’ Forum prioritises sugar projects to boost industrial growth, create jobs, and support local production across 11 states

The Nigeria Governors’ Forum has agreed to prioritise sugar as a key driver of industrial development across states, following proposals presented by the National Sugar Development Council.

Also read: Cardiologist warns sugary drinks raise heart disease risk

The decision positions sugar projects as priority beneficiaries in engagements with development partners both within Nigeria and internationally, aiming to halt raw sugar imports, generate employment, and achieve national self-sufficiency.

Executive Secretary and CEO of NSDC, Mr Kamar Bakrin, urged governors in viable sugarcane cultivation states to embrace project development, highlighting 11 states with suitable land for large-scale production: Oyo, Kwara, Niger, Nasarawa, Kaduna, Kano, Bauchi, Gombe, Jigawa, Adamawa, and Taraba.

Mr Bakrin noted that macroeconomic developments have enhanced the competitiveness of domestic sugar.

While global sugar prices remain stable in dollars, exchange rate movements have increased import costs, making locally produced sugar commercially attractive.

He emphasised that Nigeria has strong operational fundamentals, with approximately 1.2 million hectares suitable for cultivation, far above the 200,000 hectares needed to achieve self-sufficiency.

He outlined the economic potential of the sector, noting that Nigeria’s sugar industry is now valued at $2bn, potentially reaching $7bn across Africa under the African Continental Free Trade Agreement.

By-products alone, including ethanol and bio-electricity, could generate up to $10bn domestically.

Highlighting community impact, Mr Bakrin stressed that sugar projects integrate local communities as partners and workers, supporting inclusive rural development and environmental sustainability.

He cited a model project producing 100,000 metric tons annually, requiring $250m investment and delivering a 24 per cent internal rate of return.

Director-General of the NGF, Dr Abdulateef Shittu, noted that many state governments are already involved or seeking participation in sugar projects spanning land development, agro-industrial initiatives, and agricultural schemes.

He called for strong coordination between federal policy and state priorities to unlock these opportunities.

Also read: Dangote Sugar turnover leads top 10 consumer goods firms

Dr Shittu pledged that the NGF secretariat will support states in focusing on sugar projects to drive rural development, job creation, and industrial growth.

Peculiar Adirika
Peculiar Adirika

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