The National Sugar Development Council (NSDC) and the Nigerian Export-Import Bank (NEXIM) have formed a strategic partnership to secure long-term financing aimed at transforming Nigeria’s sugar industry on a large scale, Punch reported.
The agreement followed talks between the two institutions in Abuja, according to an official statement released on Wednesday.
NSDC Executive Secretary and Chief Executive Officer Kamar Bakrin, who led the council’s delegation, introduced a funding framework built around an Engineering, Procurement, Construction, and Financing model to support commercially viable sugar projects.
As part of the arrangement, the council will focus on preparing investment-ready projects aligned with government policy and assist in raising equity. NEXIM Bank, meanwhile, will work to attract funding by engaging international export credit agencies, collaborating with development finance institutions, supporting financing for imported inputs, and offering safeguards such as guarantees and risk insurance.
Bakrin pointed to the strong potential within Nigeria and the broader African market, estimating the country’s sugar market at about $2 billion and the continental market at nearly $7 billion. He added that products derived from sugar account for a domestic market exceeding $10 billion.
He emphasised that boosting local sugar production would require sustained, large-scale financing rather than short-term investment, noting that the partnership is intended to create a financial structure capable of supporting committed investors.
According to Bakrin, Nigeria could supply both domestic and regional markets under the African Continental Free Trade Agreement if affordable, long-term funding is directed toward expanding sugarcane cultivation and industrial processing.
He also revealed that the financing structure is already being applied through an existing partnership with Chinese engineering conglomerate SINOMACH. That arrangement provides up to $1 billion in funding at the Secured Overnight Financing Rate plus three percent, with a 15-year repayment period and a three-year grace period, aimed at accelerating major sugar projects.
The initiative is expected to reduce import dependence and save roughly $300 million in foreign exchange each year while creating more than 50,000 jobs across the sugar value chain. It could also replace up to a quarter of imports within five to ten years.
Bakrin said steps are being taken to make the sector more attractive to investors, including plans to incorporate the Nigeria Sugar Master Plan into law through amendments to the NSDC Act to ensure policy consistency and investor protection.
Authorities are also tightening enforcement to curb smuggling and the influx of cheaper products that have affected domestic producers.
Large projects are designed to generate employment across agriculture, processing, transport, and support services. Outgrower programmes will integrate small-scale farmers into commercial supply networks, helping raise rural incomes and encourage inclusive development.
He added that host communities will benefit from priority hiring, training opportunities, and investments in infrastructure, healthcare, and education to support long-term stability.
Bakrin further noted that sugarcane farming aligns with environmental targets, describing it as a renewable crop that absorbs carbon year-round. The industry also produces renewable outputs such as ethanol and bioelectricity, supporting energy transition efforts.
Responding to the proposal, NEXIM Bank Managing Director Abba Bello described the sugar industry as vital to Nigeria’s economic diversification, export expansion, and value-chain growth. He said the bank is ready to consider structured partnerships that can unlock long-term funding, strengthen domestic production, and enhance the country’s position in regional and global markets.
Bello also commended the council’s organised, execution-focused strategy and reiterated the bank’s support for projects that promote exports and reduce reliance on imports in line with national development priorities.
