Nigeria launches ₦10bn sugar industry fund to develop new projects, attract investment, and strengthen domestic sugar production

Nigeria has unveiled a ₦10 billion financing facility aimed at accelerating domestic sugar production and supporting the development of new sugar projects nationwide.

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The Sugar Project Acceleration Fund (SPAF) was jointly established by the National Sugar Development Council (NSDC) and the Bank of Industry (BOI) to transform early-stage initiatives into bankable, investor-ready ventures.

Officials from the NSDC and BOI briefed industry stakeholders on the operational framework, eligibility criteria, and application procedures during an interactive engagement session in Abuja.

Kamar Bakrin, Executive Secretary and Chief Executive Officer of the NSDC, emphasised that the availability of capital alone is insufficient for success.

“The constraint is not the availability of money. It is the availability of projects that are properly structured, well documented and sufficiently de-risked to the standard required to receive financing,” Bakrin said.

Bakrin outlined the components of a bankable sugar project, highlighting the need for comprehensive feasibility studies, robust financial models, secure land tenure, environmental risk assessments, and credible implementation plans.

He also stressed the importance of out-grower development programmes to ensure local communities benefit from the growth of the industry.

Hadiza Shuaib, representing the BOI, explained that the bank would manage the SPAF, including conducting credit appraisals, managing risks, disbursing loans, and monitoring project performance.

She noted that eligibility is limited to companies and investors engaged in sugar production or related activities.

The SPAF is designed not as a grant but as a development-focused facility, bridging the gap between promising concepts and fully developed projects capable of attracting long-term investment.

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The initiative forms part of Nigeria’s broader strategy to expand agro-industrial capacity, reduce sugar imports, and encourage private sector participation in the sugar value chain, positioning the country for sustainable industrial growth.