Nigeria secures $1billion investment with Chinese firm to boost sugar production self-sufficiency 

The collaboration, formalized through a Memorandum of Understanding (MoU) with the National Sugar Development Council (NSDC), will focus on jointly developing a large-scale sugarcane cultivation and processing project in Nigeria. 

Executive Secretary of NSDC, Mr. Kamar Bakrin, disclosed this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.  

He noted that the agreement is expected to attract investments worth up to $1 billion and represents one of the early outcomes of the Nigeria-China Strategic Partnership championed by President Bola Tinubu. 

According to the Memorandum of Understanding (MoU), SINOMACH will construct a sugar processing plant and develop a sugarcane plantation with an initial annual processing capacity of 100,000 metric tonnes, aiming for a long-term target of one million metric tonnes. 

Bakrin described the agreement as a strategic milestone in Nigeria’s pursuit of self-sufficiency in sugar production. “2025 is a pivotal year for Nigeria, and we must make bold moves towards food security and economic self-sufficiency,” he said. 

He explained that the project is expected to create thousands of jobs, stimulate rural infrastructure development, conserve foreign exchange, and serve as a model for Nigeria’s broader industrialization efforts. 

“This partnership with SINOMACH is unique. It combines engineering, procurement, and construction (EPC) with development financing, an essential model for agro-industrial transformation,” he added. 

NSDC, he said, will provide full support to ensure a smooth project takeoff, including facilitating approvals, land acquisition, and other necessary authorizations. 

Also speaking, the Vice President of SINOMACH, Mr. Li Yu, praised Nigeria’s implementation of the Nigeria Sugar Master Plan (NSMP), referring to it as a “sweet revolution” that aligns with the goals of food sovereignty and economic dignity. 

“We believe this partnership will not only boost Nigeria’s sugar self-sufficiency but also promote rural development, create employment, and enhance agricultural modernization,” Li said. 

He also revealed that SINOMACH is exploring RMB-based financing models to fund the project, an approach expected to reduce financing costs and speed up approval processes in China. 

Li expressed optimism about the project’s long-term impact, stating that the selected host state could eventually emerge as the “Sugar Bowl of West Africa.” 

The National Sugar Development Council (NSDC) was created by Decree 88 of 1993, now known as the Act Cap. No. 78 LFN of 2004 and amended in 2015. 

Its core mission is to drive the development of Nigeria’s sugar industry, aiming to achieve at least 70% self-sufficiency in sugar production in the shortest possible time. The council also envisions positioning Nigeria as a sugar-exporting nation to boost foreign exchange earnings. 

NSDC was established to address the lack of effective planning and coordination in the sugar sub-sector. Before its creation, sugar development efforts were poorly managed, hindering the sector’s contribution to Nigeria’s industrial and economic growth. 

NSDC was established to address the lack of effective planning and coordination in the sugar sub-sector. Before its creation, sugar development efforts were poorly managed, hindering the sector’s contribution to Nigeria’s industrial and economic growth.