NSDC and NEXIM Bank launch $1B financing drive to boost Nigeria’s sugar industry, aiming for self-sufficiency, import substitution, and job creation

National Sugar Development Council (NSDC) and Nigerian Export-Import Bank have launched a major financing initiative to reposition Nigeria’s sugar industry, mobilising long-term capital for large-scale sectoral transformation.

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The partnership, formalised in Abuja, will deploy the Engineering, Procurement, Construction plus Financing (EPC+F) model to fund viable, policy-aligned sugar projects nationwide.

Under the framework, NSDC will originate and structure bankable projects and facilitate equity mobilisation, while NEXIM Bank will anchor capital raising via international Export Credit Agencies (ECAs), Development Finance Institutions (DFIs), foreign input financing, guarantees, and risk insurance.

Kamar Bakrin described the sugar industry as a high-potential sector capable of driving economic diversification.

He noted that Nigeria’s sugar market is currently valued at approximately $2 billion, compared with Africa’s $7 billion market, while local sugar by-products alone exceed $10 billion in market value.

Bakrin emphasised that self-sufficiency requires patient, long-tenor financing at scale.

He highlighted a partnership with SINOMACH under which up to $1 billion in financing has been structured at SOFR plus three per cent, with a 15-year tenor and three-year moratorium.

The initiative is projected to generate annual foreign exchange savings of around $300 million, create over 50,000 jobs, and achieve up to 25 per cent import substitution within five to ten years.

To mitigate risks and ensure policy continuity, NSDC is working to codify the Nigeria Sugar Master Plan into law, strengthen enforcement to curb smuggling, and protect local investments.

Projects will also integrate smallholder farmers through outgrower schemes, involve host communities, and incorporate environmentally sustainable elements such as ethanol production and bioelectricity generation.

Abba Bello welcomed the initiative, highlighting the strategic relevance of sugar to economic diversification, export growth, and value-chain development.

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He commended NSDC’s coordinated, execution-driven framework for improving investor confidence and project bankability, reaffirming NEXIM Bank’s commitment to backing export-oriented, import-substitution projects that strengthen Nigeria’s competitiveness and foreign exchange earnings.