The National Sugar Development Council (NSDC) has signed a major Memorandum of Understanding (MoU) with SINOMACH, a Chinese conglomerate, for the development of a sugarcane cultivation and processing project capable of producing one million metric tonnes of sugar in the country, reported Business Day.
This partnership, signed under the broader Nigeria-China Strategic Partnership initiated by President Bola Ahmed Tinubu, is expected to attract investments of up to $1 billion into Nigeria’s sugar industry.
As part of the deal, SINOMACH will begin by constructing a sugar processing plant and developing a sugarcane plantation with a yearly output of 100,000 metric tonnes. The NSDC will assist with obtaining the necessary permits and approvals to launch the project. Once completed, the initiative will increase NigeriaтАЩs current local sugar production.
In addition to handling the construction and procurement, SINOMACH will finance the project, bringing its expertise and resources to the table. This marks a significant step in NigeriaтАЩs efforts to become self-sufficient in sugar production and reduce its reliance on imports.
At the signing ceremony held in Abuja, NSDC Executive Secretary and CEO Kamar Bakrin described 2025 as a crucial year for the countryтАЩs development.
тАЬWe expect to make real progress towards economic self-sufficiency and food security,тАЭ he said. тАЬA strong sugar industry means more jobs, better rural infrastructure, and a reduction in sugar imports, which will save foreign exchange.тАЭ
He added that the sugar sector could serve as a model for NigeriaтАЩs broader industrialisation plans, highlighting the importance of well-thought-out policies, access to technical skills, and innovative financing.
тАЬThis MoU is not just about building a sugar factory,тАЭ Bakrin said. тАЬItтАЩs about creating a long-term partnership that will help us reach our target of producing one million metric tonnes of sugar locally. This project combines construction expertise with financial backingтАФan essential mix for driving agricultural development.тАЭ
SINOMACH Vice President Li Xiao Yu praised NigeriaтАЩs commitment to the Nigeria Sugar Master Plan (NSMP), which aims to boost local production and reduce imports.
тАЬWe admire this vision,тАЭ he said. тАЬItтАЩs more than an economic policyтАФitтАЩs about food independence and national pride.тАЭ
Li said the project is expected to create jobs, stimulate economic activity in surrounding areas, modernise the agricultural sector, and offer long-lasting social benefits. He added that the company is exploring the use of Chinese currency (RMB) for financing, which would reduce costs and speed up the approval process in China.
He also expressed hope that the Nigerian state selected for the project could become known as the тАЬSugar Bowl of West Africa.тАЭ
