Nigeria's National Sugar Development Council presented a ten-year, 7.1 billion-dollar programme on Sunday, October 11, to lift annual output beyond 2 million tonnes and reduce reliance on imports.
The country consumes about 1.8 million tonnes of sugar a year, while local mills produced only about 27,000 tonnes last year. More than 97% of refined sugar still comes from imported raw sugar, according to data released by the public agency.
The 7.1 billion dollars is not yet secured financing. The plan envisages raising 5 billion dollars in debt and 2.1 billion in equity from sponsors. The debt component is expected to include 3 billion from export credit agencies, 1.75 billion from development finance institutions and 250 million from Nigerian institutions.
Ten new sugar complexes are to supply 835,000 tonnes a year at full capacity. The council says it has identified sponsors and secured 143,478 hectares across eight states, including Niger, Kwara, Oyo, Kaduna, Jigawa, Bauchi, Nasarawa and Adamawa. The projects, designed to also produce ethanol and electricity, are still subject to independent technical reviews.
Existing operators are expected to add 1.22 million tonnes, compared with about 100,000 tonnes expected from estates already in operation. The programme also sets aside 11,000 hectares for partner outgrowers, of which 7,000 hectares have been identified in the states of Kwara, Niger and Adamawa.
The council estimates that the ramp-up could save 2.1 billion dollars in foreign exchange a year and create 110,000 direct and indirect jobs. These effects remain contingent on mobilising capital, the viability of sites and the ability of operators to secure irrigation, seed and markets.