Business

NSDC unveils ten new sugar estates targeting 835,000 tonnes of annual output

Published on by Sentinel Digest Editorial

NSDC unveils ten new sugar estates targeting 835,000 tonnes of annual output
NSDC unveils ten new sugar estates targeting 835,000 tonnes of annual output

The National Sugar Development Council announced ten greenfield sugar projects that could add 835,000 metric tonnes of sugar each year. The initiative forms part of a $7.1 billion, ten‑year plan to push Nigeria’s sugar output beyond two million tonnes and save billions in foreign exchange.

The National Sugar Development Council (NSDC) has disclosed a suite of ten brand‑new sugar estates that, when operating at full capacity, are expected to generate roughly 835,000 metric tonnes (MT) of sugar per annum. The rollout is a cornerstone of a $7.1 billion, decade‑long programme designed to lift Nigeria’s yearly sugar production above two million MT and curtail foreign‑exchange outflows by about $2.1 billion.

**What does the ten‑project plan entail?**

Executive Secretary Kamar Bakrin, speaking at a weekend gathering with the new leadership of the Commerce and Industry Correspondents Association of Nigeria (CICAN), explained that all ten projects have moved beyond the conceptual stage. Credible promoters have been identified for each estate and a total of 143,478 hectares of land has already been secured. The combined milling capacity of the projects amounts to 55,500 tonnes of cane per day (TCD).

**How are the estates structured?**

Bakrin noted that each estate is being designed to produce not only sugar but also ethanol and power, ensuring they meet “bankable” standards. Independent technical reviews are currently underway for every project. The greenfield estates represent one of three key interventions in the programme, alongside optimisation of existing estates and accelerated expansion of incumbent operators. Together, these measures aim to close the national production gap.

**What is the current capacity landscape?**

Nigeria presently operates existing sugar estates with an aggregate capacity of about 100,000 MT annually. Incumbent operators contribute over 1.22 million MT each year, roughly two‑thirds of the country’s current demand. Adding the ten new estates would raise total projected output to more than 2 million MT annually, surpassing domestic needs.

**How is the council supporting cane supply?**

The NSDC is also collaborating with farmers around existing mills to boost cane availability, targeting 11,000 hectares for farmer‑grown sugarcane. To date, 7,000 hectares (64 % of the goal) have been identified in partnership with stakeholders in Kwara, Niger and Adamara states. This effort is expected to deliver 880,000 MT of cane to current mills and yield about 88,000 MT of sugar each year.

**What financing underpins the ten‑year plan?**

The $7.1 billion programme is split into $5 billion of debt and $2.1 billion of equity. Debt financing is projected to come from export credit agencies ($3 billion), development finance institutions ($1.75 billion) and local development finance institutions ($250 million).

**How is technical capacity being strengthened?**

To address shortages of quality planting material and expertise, the council has bolstered the Nigeria Sugar Institute (NSI) to provide training, extension services, planting material distribution, project evaluation and estate support.

**What monitoring mechanisms are in place?**

Bakrin affirmed that implementation will be tracked both on the ground and via satellite technology, moving the sector from policy promises to measurable results.

*For further details, see the [National Sugar Development Council](https://en.wikipedia.org/wiki/National_Sugar_Development_Council), the [Nigeria Sugar Institute](https://en.wikipedia.org/wiki/Nigeria_Sugar_Institute), and statements from Executive Secretary [Kamar Bakrin](https://nsdc.gov.ng).*

Topics: #Agriculture #Investment #National Sugar Development Council #Nigeria #Sugar

Related Stories in Business