NSDC, NEXIM Bank Seal Sugar Financing Deal

By Oluwakemi Kindness

The National Sugar Development Council (NSDC) has partnered with NEXIM Bank to secure long-term financing to scale Nigeria’s sugar production and cut reliance on imports.

The move according to a statement on Thursday is aimed at closing the major funding gap that has slowed the development of large-scale sugar projects across the country.

At a meeting in Abuja, the NSDC proposed the use of the Engineering, Procurement, Construction plus Financing (EPC+F) model, which will see the Council develop viable projects while NEXIM Bank mobilises capital through Export Credit Agencies, Development Finance Institutions and risk-mitigation instruments.

NSDC Executive Secretary, Kamar Bakrin, said Nigeria cannot achieve sugar self-sufficiency with short-term funds, noting that the sector requires patient, long-tenor capital.

He highlighted the size of the local sugar market valued at about US$2 billion, with sugar by-products exceeding US$10 billion—and the opportunities under the African Continental Free Trade Agreement (AfCFTA).

Bakrin referenced the Council’s existing EPC+F partnership with Chinese firm SINOMACH, which has structured up to US$1 billion in financing with a 15-year tenor and three-year moratorium.

He said similar models would drive import substitution, save about US$300 million in foreign exchange annually and create over 50,000 jobs across the value chain.

He also outlined ongoing measures to strengthen investor confidence, including efforts to codify the Nigeria Sugar Master Plan into law and curbing smuggling that undermines local producers.

Responding, NEXIM Bank Managing Director, Abba Bello, said the Bank is willing to support the initiative, describing the sugar industry as critical to Nigeria’s diversification and export goals.

He said NEXIM is ready to partner on structured financing that strengthens local value chains and enhances Nigeria’s competitiveness in regional markets.