ABUJA – The National Sugar Development Council (NSDC) and the Bank of Industry (BOI) have partnered to establish the Sugar Project Acceleration Fund (SPAF), a ₦10 billion initiative designed to fast-track the development of greenfield sugar projects across Nigeria.
The fund aims to provide critical financing and technical support to transform early-stage projects into “bankable” ventures capable of attracting large-scale investment. During an interactive session with potential beneficiaries, officials emphasized that the facility is intended to bridge the gap between initial concepts and financial closure.
Addressing the “Bankability” Gap
Mr. Kamar Bakrin, Executive Secretary and CEO of the NSDC, noted that the primary hurdle for the industry is not a lack of available global capital, but a shortage of projects that meet rigorous institutional standards.
”Capital availability, on its own, will not result in sugar production,” Bakrin stated. “The constraint is the availability of projects that are structured, documented, and de-risked to the standard required to receive financing.”
Bakrin clarified that SPAF is a structured pre-investment facility rather than a grant. It will support promoters in meeting Environmental, Social, and Governance (ESG) standards, conducting credible feasibility studies, and developing robust financial models.
Fund Management and Oversight
The Bank of Industry will serve as the Fund Manager, overseeing credit appraisal, risk management, and loan disbursement. Ms. Hadiza Shuaib, leading the BOI team, confirmed that the bank’s role extends beyond funding to include:
- Capacity Building: Emphasizing skills development to ensure sustainable outcomes.
- Monitoring & Evaluation: Ensuring funds are deployed responsibly and projects reach completion.
- Sector Leadership: The NSDC will provide the technical guidance necessary to align projects with national sugar objectives.
Targeted Beneficiaries
The fund is exclusively available to businesses engaged in sugar or sugar-related activities. Several greenfield promoters were present at the launch, including:
- Illaj Sugar and Brent Foods
- Crystal Sugar and Legacy Sugar
- Saro Sugar, Awaa, Ganic, and Confluence Sugar
The establishment of SPAF marks a deliberate shift toward building a “ready-to-invest” pipeline of projects to reduce Nigeria’s dependence on sugar imports and foster a competitive domestic industry.