Nigeria is targeting annual foreign exchange savings of $1 billion and the creation of 110,000 direct jobs through domestic sugar production, as the National Sugar Development Council (NSDC) said President Bola Tinubu’s macroeconomic reforms have improved prospects for achieving self-sufficiency.
The executive secretary and chief executive officer of NSDC, Mr Kamar Bakrin, disclosed this at the 32nd Nigerian Economic Summit in Abuja, where he called for consistent government policies to sustain investment in the sugar and non-alcoholic beverage industries.
Bakrin said the reforms had helped stabilise the economy and made local sugar production more attractive to investors, but stressed that policy consistency would be critical to translating the gains into jobs, foreign exchange savings and improved rural livelihoods.
Under the Nigeria Sugar Master Plan (NSMP) 2.0, the country aims to achieve self-sufficiency in sugar production, reducing dependence on imports while expanding domestic processing and sugarcane cultivation.
Speaking during a panel session on “Strengthening Policy Coordination for the Non-alcoholic Drink Sector Competitiveness,” Bakrin said the sugar industry could contribute to several national priorities, including employment, food security, rural development and pressure on foreign exchange.
He said the projected 110,000 direct jobs would largely be created in rural communities through sugar estates, processing mills and outgrower farms, where smallholder farmers cultivate sugarcane for industrial use.
The NSDC chief also disclosed that brownfield investors had committed to producing 1.22 million metric tonnes of sugar annually by 2030, two years ahead of the master plan’s 2032 timeline.
A pipeline of greenfield projects is expected to add another 830,000 metric tonnes of annual production capacity by 2030.
Bakrin urged stakeholders to recognise the connection between domestic sugar production and the beverage industry, which he identified as Nigeria’s largest industrial consumer of sugar.
He said beverage manufacturers could strengthen local production by committing to purchase Nigerian-grown sugar, supporting outgrower farmers, sharing market data and investing in the Backward Integration Programme.
However, he warned that uncertainty in fiscal and regulatory policies could undermine investment decisions because sugar estates typically require at least four years from land clearing to full production.
Investors, he said, commit substantial capital long before production begins and therefore need predictable policies and confidence in long-term demand.
Bakrin proposed that government assess the implications of fiscal and regulatory measures affecting the sugar and beverage value chain on jobs, investment and the implementation of the master plan before introducing them.
He also called for reasonable transition periods for new policies, arguing that consistency would help sustain investor confidence.
The NSDC chief said the council supported government efforts to address non-communicable diseases, adding that public health objectives and industrial development should be pursued together.
He further recommended that the Nigeria Industrial Policy Sectoral Competitiveness and Growth Initiative adopt alignment with the Sugar Master Plan as one of its performance measures.
Bakrin said stronger coordination between government and industry would help expand domestic sugar production, conserve foreign exchange and improve economic opportunities in rural communities.