By Juliet Ezeh
Nigeria has taken a new step toward strengthening local sugar production with the launch of a N10bn financing initiative designed to support the development of new sugar projects across the country.
The National Sugar Development Council, in partnership with the Bank of Industry, unveiled the Sugar Project Acceleration Fund to help greenfield investors overcome early-stage project challenges and build a stronger pipeline of bankable sugar investments.
The initiative is expected to accelerate the growth of Nigeria’s sugar industry by providing technical support and structured financing to investors seeking to establish new sugar estates and processing facilities.
Speaking during an interactive session with potential beneficiaries of the fund, the Executive Secretary and Chief Executive Officer of the NSDC, Kamar Bakrin, explained that the biggest obstacle facing many agricultural projects in Nigeria is not the lack of capital but the lack of properly structured investment proposals.
According to him, development finance institutions and impact investors are increasingly interested in funding agro-industrial projects across Africa, particularly in food production. However, many projects fail to secure financing because they are not sufficiently prepared to meet international investment standards.
Bakrin noted that successful sugar projects must be built on detailed feasibility studies that address key factors such as agronomy, water availability, infrastructure needs, and environmental and social risks.
He added that investors must also develop strong financial models that demonstrate the project’s ability to remain viable even under difficult economic conditions.
Beyond technical planning, Bakrin emphasised the importance of clear land ownership arrangements, credible outgrower programmes, and experienced management teams capable of executing large-scale agricultural investments.
He explained that the Sugar Project Acceleration Fund was designed specifically to bridge this gap between early-stage project ideas and fully bankable investments.
The fund will therefore provide technical, financial and advisory support to project promoters so their proposals can reach the level required by banks and development finance institutions.
Bakrin stressed that the facility is not a grant programme but a structured investment support platform aimed at building credible projects capable of attracting large-scale financing.
“This initiative is designed to develop a strong pipeline of investor-ready sugar projects in Nigeria that can absorb the financing we are working to mobilise,” he said.
The Bank of Industry will serve as the fund manager, overseeing the financial operations of the facility, including credit assessment, loan disbursement, risk management and project monitoring.
A representative of the bank, Hadiza Shuaib, said the institution would ensure that funds are deployed responsibly and that supported projects are properly structured to deliver long-term economic benefits.
She explained that the programme also focuses on capacity building, noting that skills development is essential for the success of agro-industrial projects.
According to her, financing alone cannot guarantee sustainable outcomes without the technical knowledge and operational capacity required to run complex agricultural ventures.
The initiative is expected to support businesses engaged in sugar production and related value chain activities.
Several companies exploring new sugar investments attended the session, including Illaj Sugar, Brent Foods, Crystal Sugar, Legacy Sugar, Saro Sugar, Awaa, Ganic and Confluence Sugar.
Industry stakeholders say the new fund could help Nigeria reduce its reliance on sugar imports by encouraging the development of local plantations and processing facilities, while also creating jobs and strengthening the country’s agro-industrial base.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.