NSDC, Investors Seal Landmark Deal to Produce 400,000MT of Sugar Annually

By Oluwakemi Kindness

The National Sugar Development Council (NSDC) has signed landmark agreements with four private operators to establish large-scale greenfield projects that will produce a combined 400,000 metric tonnes of sugar every year.

The agreements, signed at the NSDC headquarters in Abuja, involve Brent Sugar (Oyo State), Niger Foods (Niger State), Legacy Sugar (Adamawa State) and UMZA (Bauchi State).

According to a statement on Tuesday by the council, each operator will develop a 100,000-tonne capacity facility, strategically located across the country’s agricultural belt to leverage diverse climatic conditions and spread economic benefits nationwide.

Under the terms, the NSDC will provide tailored project development support and cover critical service costs to ensure the projects achieve full commercial viability.

NSDC Executive Secretary, Kamar Bakrin describes the initiative as part of 2025’s “year of accelerated development” for the sugar sector, stressing that the projects will help slash Nigeria’s heavy sugar import bill, protect foreign exchange reserves, and strengthen food security.

The latest deal builds on a recently signed $1 billion partnership between the NSDC and a Chinese engineering consortium to construct up to five modern sugar estates, underscoring Nigeria’s willingness to combine foreign technical expertise with local investment to fast-track production.

Bakrin notes that shifting dynamics in global commodity markets have made local sugar production more commercially attractive than ever, creating a rare window of opportunity for rapid industrial growth.

He adds that beyond boosting supply, the four projects are expected to generate thousands of rural jobs, improve local infrastructure, and spur upstream and downstream value chains in agriculture and manufacturing.

With strategic locations from the southwest to the northeast, the projects aim to reduce regional economic disparities while positioning Nigeria as a potential sugar hub under the African Continental Free Trade Area (AfCFTA), serving West African markets and driving regional trade integration.