KEY POINTS
- Investors urged to take advantage of $2bn sugar market in Nigeria.
- NDSC implements production through the Backward Integration Plan within the country.
- The community integration model thus guarantees for sustainable industry and local returns.
The Nigerian government has urged both domestic and foreign investors to take advantage of investing in the $2 billion worth of Sugar in the country.
Kamar Bakrin, Executive Secretary of the National Sugar Development Council (NSDC), cited the increasing demand for local production saying that Nigeria importation meets 96 percent of the nation’s total sugar requirement presently.
Commercial potential And profitability analysis
Bakrin moved to point out that sugar processing cannot only be lucrative, but it is wise for Nigeria to engage in the production of this product, especially given the country’s annual consumption estimate of between 1.4 and 1.6 million metric tonnes.
In the process, the domestic produces a cheaper source of sugar as compared to importing it.
The Backward Integration Plan of NSDC provides the policies and incentive structures to encourage local development with trying to create an economically sustainable industry.
Integration of Communities for Sustainable Development
NSDC’s community integration model entails that operators of sugar projects spend in community development by funding basic facilities such as schools and clinics and staffing them with locals.
This approach increases community support and therefore makes the industry more stable and robust. For the future, NSDC has named 2025 as a crucial year for raising funds to increase investment.
This could substantially save Nigeria $350 million spent annually on the importation of sugar which is the primary intention of extending the NSMP for a production rate of 1.7 to 1.8 million metric tons per annum 2033, and similarly generate about 110,000 jobs in Nigeria’s sugar industry.
