The National Sugar Development Council (NSDC) and the Nigerian Export-Import Bank (NEXIM Bank) have entered a strategic partnership aimed at securing long-term, development-oriented financing to overhaul Nigeria’s sugar industry.
The collaboration, announced following a high-level meeting in Abuja, centers on the Engineering, Procurement, Construction plus Financing (EPC+F) model. This framework is designed to move the sector away from speculative investment toward large-scale industrial execution.
The Financing Architecture
Under the proposed agreement, the NSDC will focus on developing bankable projects and mobilizing equity. NEXIM Bank will act as the financial anchor, facilitating access to international Export Credit Agencies (ECAs), coordinating with other Development Finance Institutions (DFIs), and providing risk-mitigation tools such as commercial risk insurance and guarantees.
NSDC Executive Secretary/CEO, Mr. Kamar Bakrin, emphasized that the sector’s capital requirements cannot be met by short-term loans.
”Nigeria cannot achieve self-sufficiency in sugar production on short-term capital,” Bakrin stated. “What the sector requires is patient, long-tenor financing deployed at scale and backed by policy certainty.”
Proven Success and Economic Impact
The NSDC has already seen success with this model through a partnership with the Chinese conglomerate SINOMACH. That arrangement structured up to US$1 billion in financing with a 15-year tenor and a three-year moratorium.
The Council projects that scaling this model will:
- Save approximately US$300 million in foreign exchange annually.
- Create over 50,000 jobs across the sugar value chain.
- Achieve 25% import substitution within the next five to ten years.
Market Opportunity and Sustainability
Mr. Bakrin highlighted a massive economic landscape, noting that the Nigerian sugar market is valued at US$2 billion, while the broader African market stands at US$7 billion. Additionally, sugar by-products—including ethanol and bioelectricity—represent a market potential exceeding US$10 billion in Nigeria alone.
To protect these investments, the NSDC is working to codify the Nigeria Sugar Master Plan (NSMP) into law and is intensifying enforcement against smuggling to prevent the influx of cheap, subsidized imports.
Commitment to Inclusive Growth
The partnership also prioritizes social and environmental goals. The projects are designed to integrate smallholder farmers through outgrower schemes and ensure host communities benefit from infrastructure, healthcare, and education investments.
NEXIM Bank Managing Director, Mr. Abba Bello, expressed strong support for the initiative, noting that the sugar industry is vital to Nigeria’s economic diversification and export goals. He reaffirmed the bank’s commitment to supporting projects that align with national priorities and enhance Nigeria’s competitiveness under the African Continental Free Trade Agreement (AfCFTA).
