The National Sugar Development Council has signed a Memorandum of Understanding with Chinese industrial giant, SINOMACH, to launch a sugarcane cultivation and processing project that could produce up to one million metric tonnes of sugar in Nigeria.
The agreement, part of the broader Nigeria-China Strategic Partnership initiated by President Bola Tinubu, is expected to draw up to one billion dollars in investment into the Nigerian sugar sector.
Per the MoU, SINOMACH will kick off with the construction of a sugar production plant and a sugarcane plantation projected to deliver 100,000 metric tonnes annually.
The NSDC will play a key role in helping the project secure all necessary authorisations and permits paving the way for a major leap in Nigeria’s local sugar production capacity.
Crucially, the Chinese firm will not only offer engineering, procurement, and construction expertise but also fund the project, combining infrastructure development with innovative financing.
At the MoU signing ceremony in Abuja, NSDC’s Executive Secretary/CEO, Kamar Bakrin, emphasized the significance of the initiative in Nigeria’s economic development roadmap.
“It is a critical period during which we expect to make significant strides in our national journey towards economic self-sufficiency and food security, especially given the fiscal pressure that Nigeria faces,” Bakrin stated.
He highlighted the multiple benefits a thriving sugar industry could bring to the nation.
“These include the creation of thousands of sustainable jobs across the value chain. Sugar, by its very nature, leads to extensive rural infrastructure development. For Nigeria, it will also result in substantial foreign exchange savings, as it will substitute imports, which currently account for the bulk of the country’s sugar consumption,” he added.
Bakrin noted that sugar could serve as a model sector for Nigeria’s broader industrialization strategy, pointing to China’s own development path as a parallel.
“We envision a sugar sector, when fully developed, that will serve as a blueprint for Nigeria’s broader industrialization strategy. And, of course, China, being the world’s leader in industrialization, can easily relate to this.
“We believe that the sugar industry can serve as a model in this regard, as it gives us an opportunity to adopt a creative and transformative approach to achieving scale and speed critical elements for Nigeria’s development.
“Specific elements that we believe, if successfully implemented in the sugar sector, can be replicated in other areas of Nigeria’s industrialization include a strategic approach to sector development, the establishment of enabling policy frameworks, effective aggregation of critical production inputs, acquisition of technical skills and competencies, and innovative financing solutions.”
“The signing of this MoU marks the beginning of what we anticipate will evolve into a long-term relationship capable of ultimately delivering as much as one million metric tonnes of locally produced sugar, thereby strengthening our domestic production capacity and reducing import dependence.
“It is indeed a unique model, as it combines both EPC and development financing, an essential requirement for agro-industrial development in the country,” he concluded.
On his part, SINOMACH Vice President, Li Xiao Yu, praised Nigeria’s commitment to self-sufficiency through the Nigeria Sugar Master Plan, describing it as a bold and visionary strategy.
“We deeply admire this vision. It is not only an industrial policy but also a sweet revolution tied to food sovereignty and economic dignity.
“We firmly believe that, through joint efforts, the success of the plantation and sugar mill project will enhance Nigeria’s sugar self-sufficiency, spur economic development in surrounding areas, create substantial employment, modernise the agricultural value chain, and generate long-term and sustainable social benefits.
“We view our partnership with NSDC not merely as a commercial endeavour, but as a concrete step toward implementing the shared vision of our two Heads of State to enhance agricultural cooperation and promote common development,” he added.
Li Xiao Yu also revealed SINOMACH’s plans to explore RMB-based financing models.
“We are also actively exploring the implementation of RMB-based financing models to support our collaboration in contributing to the internationalisation of the Chinese currency; diversifying Nigeria’s financing channels, reducing overall costs, and expediting project approvals on the Chinese side. This will ensure stable and efficient funding support,” he explained.
He concluded by expressing optimism about the potential impact of the project on the region:
“We hope that the state eventually selected to host the project in Nigeria could be transformed into the ‘Sugar Bowl of West Africa.”
