NGF’s Sugar Strategy Targets $2B Industrial Development

The Nigeria Governors’ Forum (NGF) has resolved to designate sugar production as a strategic sector to drive industrial development and generate over $2 billion in revenue across Nigerian states. The decision follows a formal partnership endorsed with the National Sugar Development Council (NSDC) to assist state governments in designing and securing investment-ready sugar projects.

The collaboration, announced after a joint meeting, positions sugar-related initiatives as a priority in the NGF’s engagements with both local and international development partners. The move aims to harness Nigeria’s agricultural potential to achieve economic diversification and reduce reliance on sugar imports.

According to NSDC Executive Secretary Mr. Kamar Bakrin, recent macroeconomic shifts have improved the competitiveness of domestically produced sugar. While global prices have been stable, currency depreciation has made imports more expensive, enhancing the viability of local production with predominantly naira-denominated costs. Bakrin identified 11 states—Oyo, Kwara, Niger, Nasarawa, Kaduna, Kano, Bauchi, Gombe, Jigawa, Adamawa, and Taraba—as having proven, suitable land for profitable sugarcane cultivation.

He noted that Nigeria possesses approximately 1.2 million hectares of prime land suitable for large-scale sugarcane farming, far exceeding the 200,000 hectares needed for national self-sufficiency. “The availability of suitable land, water resources, labor, and policy incentives positions Nigeria favorably for large-scale sugar investments,” Bakrin stated.

The domestic sugar industry is currently valued at about $2 billion, with the wider African market—bolstered by the African Continental Free Trade Agreement (AfCFTA)—estimated at $7 billion. Addressing social concerns, Bakrin emphasized that sugar projects integrate host communities through outgrower schemes and employment, rather than displacing them, promoting inclusive rural development and environmental sustainability.

NGF Director-General Dr. Abdulateef Shittu confirmed that several states are already exploring or implementing sugar-related ventures in land development, agriculture, and agro-industry. However, he stressed that success hinges on strong coordination, credible investment frameworks, and alignment between federal policies and state-level strategies. The NGF secretariat has pledged to advocate for sugar investment prioritisation within state development plans due to its potential for job creation and rural economic growth.

The partnership signals a coordinated effort to transform Nigeria’s sugar sector from an import-dependent industry into a significant driver of agricultural industrialisation and regional economic integration. Next steps involve the NSDC providing technical support to states to develop bankable project proposals, aiming to attract both domestic and foreign capital into the value chain.

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