Nigerian governors target $2bn revenue from sugar projects

The Nigeria Governors’ Forum, NGF, has resolved to make sugar a strategic commodity for driving industrial development and to attract over $2 billion worth of revenue across states in the country.

The Forum also agreed that sugar-related projects would be treated as priority in its engagements with development partners, both locally and internationally.

These resolutions followed a collaboration between the National Sugar Development Council, NSDC, and the NGF, after which the Forum endorsed a formal partnership with the Council to help states design and position sugar projects that are ready for investment.

Speaking on the development, the Executive Secretary of the NSDC, Mr. Kamar Bakrin, who presented the proposals at the meeting with the NGF, urged state governors to fully embrace sugar project development.

He identified 11 states with proven and suitable land for profitable sugar production as Oyo, Kwara, Niger, Nasarawa, Kaduna, Kano, Bauchi, Gombe, Jigawa, Adamawa and Taraba.

Bakrin explained that recent macroeconomic trends have strengthened the competitiveness of locally produced sugar.

“While global sugar prices have remained relatively stable in dollar terms, exchange rate movements have made imports significantly more expensive, thereby enhancing the commercial viability of domestically produced sugar, whose inputs are largely naira-denominated,” he said.

He added that Nigeria now possesses solid operational fundamentals for sugar production, noting that studies have identified about 1.2 million hectares of prime land suitable for large-scale sugarcane cultivation nationwide, even though only 200,000 hectares are required to attain sugar self-sufficiency. “The availability of suitable land, water resources, labor, and policy incentives positions Nigeria favorably for large-scale sugar investments,” Bakrin stated.

According to him, the Nigerian sugar industry is currently valued at about $2 billion, while the wider African market, supported by the African Continental Free Trade Agreement, AfCFTA, is estimated at $7 billion.

Addressing community concerns, Bakrin said, “The Nigerian sugar industry does not displace communities; instead, it integrates them into the value chain as partners, workers, and stakeholders through outgrower schemes and employment opportunities.”

He further noted: “Sugarcane projects will empower host communities, promote inclusive development, and support environmental sustainability.”

Also speaking, the Director-General of the NGF, Dr. Abdulateef Shittu, said several state governments are already involved in, or interested in, sugar-related ventures ranging from land development and agricultural schemes to agro-industrial projects. He noted, however, that realising these opportunities depends on strong coordination, credible investment frameworks and alignment between federal policies and state development goals.

Shittu pledged that the NGF secretariat would work to ensure state development strategies increasingly prioritise sugar investments, given their potential for rural development and job creation.

Nigerian governors target $2bn revenue from sugar projects