Nigeria lacks infrastructure to meet domestic sugar output

Nigeria has the potential to increase sugar output but lacks infrastructural development to achieve the target. According to the media report, it is threatening over N160billion sugar investment across the nation.

As per the projections, the country needs 1.7 million metric tonnes of sugar to meet domestic needs this year.

The country is the world’s largest sugar importer in West Africa and second-largest in Africa after Algeria.

According to the National Sugar Development Council (NSDC), in 2012, sugar consumption in Nigeria was 1.1 million metric tonnes. It was 1.50 million tonnes in 2015, increased to 1.56 million metric tonnes in 2016 and 1.6 million metric tonnes in 2017.

The government had introduced an import duty to 20 per cent and 75 per cent levy on refined sugar to boost local sugar output. The government also waived off the tax for five years for the domestic sugar producers. However, it was found that despite this the sugar output was decreased from 80,000 metric tonnes to 75,000 metric tonnes due to lack of infrastructure to meet local demand.

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