Nigeria is turning its attention to sugar, a commodity that drains billions of naira in foreign exchange each year.
Despite its suitable climate for sugarcane cultivation, the country has long depended on imports to meet demand, undermining both food security and local job creation.
According to the National Sugar Development Council (NSDC), Nigeria consumes around 1.7 million metric tonnes of sugar annually but produces less than 40,000 metric tonnes of that locally. The gap has widened import bills, with the country spending over $500 million yearly to bring in refined varieties and raw inputs.
During a courtesy visit by Niger Foods Security Systems and Logistics Company Ltd, Minister of Agriculture and Food Security Abubakar Kyari stressed the importance of sugar to Nigeria’s economy. He noted that the value chain has vast potential to raise the Gross Domestic Product (GDP) and employ thousands of farmers across the country.
Kyari reaffirmed the government’s readiness to partner with credible investors under the National Sugar Master Plan (NSMP), which aims to boost self-sufficiency and reduce imports.
Leading the private-sector charge, Niger Foods Security Systems announced plans to cultivate 50,000 hectares of sugarcane in Niger State, targeting an output of two million tonnes.
According to Executive Chairman Sammy Adigun, the initiative will require an estimated $3 billion in plants and processing infrastructure, but the returns could be transformative.
Adigun highlighted that the company had already demonstrated what was possible: from just three hectares of land last year, Niger Foods harvested 60,000 tonnes of sugarcane. With federal support and investment, he argued, such productivity can be scaled nationwide.
Sugar’s essence
While most Nigerians associate sugar with sweetening foods and drinks, its uses stretch far beyond the kitchen.
It is an essential input in pharmaceuticals, where it acts as a stabiliser in syrups and antibiotics. It is also key in ethanol production, which powers biofuels and industrial solvents, and plays a role in yeast fermentation for bread, beer, and other beverages.
In cosmetics, its derivatives are used in scrubs and skincare products; meanwhile, in industries, it serves as a binding and preservative agent. Globally, the sugarcane by-product, molasses, is used in animal feed and even in the production of citric acid.
These less-discussed applications make local production vital for healthcare, energy and manufacturing security.
Manufacturing security refers to a country’s ability to guarantee reliable access to the raw materials needed for its industries, without being overly dependent on imports or vulnerable to external shocks.
Nigeria’s reliance on imports to sate its sweet tooth has knock-on effects. It strains the foreign exchange market, raises food costs, and leaves the country vulnerable to global price shocks.
Based on estimates by the NSDC, the NSMP could help Nigeria save over $1 billion annually in imports while creating hundreds of thousands of direct and indirect jobs in farming, refining, and logistics.
The push also aligns with President Tinubu’s broader Renewed Hope Agenda, which identifies sugar as a priority sector for food and nutrition security. By working with private partners like Niger Foods, the government hopes to replicate in sugar the kind of self-sufficiency already being pursued in rice and wheat.
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