NGF Moves to Position Sugar as Catalyst for States’ Industrial Growth

The Nigeria Governors’ Forum (NGF) Secretariat has resolved to give priority attention to sugar as a strategic commodity for driving industrial development across states of the federation.
The Forum also agreed that sugar-related projects will be treated as priority beneficiaries in its engagements with development partners, both locally and internationally.

These resolutions followed requests presented by the National Sugar Development Council (NSDC) as part of efforts to fulfil its mandate of developing the sugar sector, halting the importation of raw sugar, generating employment, and achieving national self-sufficiency in sugar production.
Consequently, the NGF endorsed a partnership with the NSDC aimed at supporting states to develop and position sugar projects that are investor-ready. The collaboration will also facilitate structured engagement among state governments, investors and industry operators, while strengthening coordination around critical enablers such as land access, infrastructure provision and incentive frameworks.
The Executive Secretary and Chief Executive Officer of the NSDC, Mr. Kamar Bakrin, who presented the requests during a meeting with the NGF leadership, highlighted the vast investment opportunities within the sugar sector. He urged governors of states suitable for sugarcane cultivation—through the NGF—to embrace sugar project development.
According to him, 11 states have been identified as having proven and suitable land for profitable sugar production. These states are Oyo, Kwara, Niger, Nasarawa, Kaduna, Kano, Bauchi, Gombe, Jigawa, Adamawa and Taraba.
Mr. Bakrin observed that recent macroeconomic developments have significantly enhanced the competitiveness and profitability of local sugar production. He explained that while global sugar prices have remained relatively stable in dollar terms, exchange rate movements have made sugar imports more expensive, thereby improving the commercial viability of domestically produced sugar, whose inputs are largely naira-denominated.
He further noted that Nigeria now possesses strong operational fundamentals for sugar production. Comprehensive assessments, he said, have identified about 1.2 million hectares of prime land suitable for large-scale sugarcane cultivation nationwide, even though only 200,000 hectares are required for the country to attain self-sufficiency in sugar production. According to him, the availability of suitable land, water resources, labour and policy incentives places Nigeria in a favourable position for large-scale sugar investments.
The NSDC boss added that these critical factors have created significant investment opportunities in Nigeria’s sugarcane cultivation and processing industry. He disclosed that the sector is currently valued at about $2 billion and could reach $7 billion across the continent under the African Continental Free Trade Agreement (AfCFTA). He also noted that the market for sugar by-products alone is worth an estimated $10 billion in Nigeria.
On community engagement, Mr. Bakrin stressed that the Nigerian sugar industry does not displace host communities but rather integrates them into the value chain as partners, workers and stakeholders through outgrower schemes and employment opportunities. He said sugarcane projects have the potential to empower host communities, promote inclusive development and support environmental sustainability.
He cited a model sugar project with an annual production capacity of 100,000 metric tons as evidence of the sector’s commercial attractiveness. Such a project, he said, would require an estimated investment of about $250 million and deliver an internal rate of return (IRR) of approximately 24 per cent, alongside a positive net present value. In addition to sugar, he explained, the projects also produce valuable by-products such as ethanol and bio-electricity, further enhancing profitability and sustainability.
In his remarks, the Director-General of the NGF, Dr. Abdulateef Shittu, noted that many state governments are already involved, or are keen to participate, in sugar-related investments covering land development, agricultural schemes and agro-industrial initiatives. He, however, pointed out that unlocking the full potential of these opportunities requires effective coordination, credible investment frameworks and strong alignment between federal policy objectives and state-level development priorities.
Dr. Shittu therefore assured that the NGF Secretariat is committed to ensuring that state development priorities increasingly focus on sugar project investments, given their strong capacity for rural development and job creation.