Home NewsNSDC Calls For More Private Sector Involvement in Local Production of Sugar 

NSDC Calls For More Private Sector Involvement in Local Production of Sugar 

by AgroNigeria

The National Sugar Development Council (NSDC) has called for more private sector involvement in sugar production as the country works toward reducing reliance on imported sugar. 

Speaking during a visit by the leadership of the All Farmers Association of Nigeria (AFAN) in Abuja, the Executive Secretary of NSDC, Mr. Kamar Bakrin, highlighted the growing potential of the domestic sugar industry.

He revealed that Nigeria’s sugar market is now worth more than 2 billion dollars, while the African market as a whole is valued at around 7 billion dollars. He also pointed out that the continent is facing a growing supply gap, which is expected to reach 13 million metric tons by the end of the decade. In addition to sugar, related products such as ethanol, animal feed, and other industrial by-products present a market estimated at 10 billion dollars.

Bakrin explained that Nigeria’s current economic environment, exchange rate pressures, and global uncertainties make local sugar production a more viable option than importing. He said the Council has already identified 150,000 hectares of land suitable for sugarcane farming, with favorable climate conditions, nearby water sources, and strong support from host communities.

The NSDC is working to make these lands available to commercial farmers, particularly those who can manage plots of 50 to 200 hectares. These farmers will be located near existing sugar estates in places like Numan, Bacita, Sunti, and Lafiagi. The goal is to place 50,000 hectares under sugarcane through a commercial outgrower scheme.

To support this, NSDC has introduced a set of measures under the second phase of the Nigeria Sugar Master Plan. These include access to funding through the Nigeria Sugar Industry Development Fund, reduced tariffs on equipment, a five-year tax holiday, and a 30 percent tax credit for infrastructure development. Support for land preparation, seedling supply, machinery, and training will also be provided, along with agreements guaranteeing that sugar processors will buy from local growers.

According to Bakrin, these measures are designed to reduce investment risks and encourage farmers and investors to take part in expanding the industry. He added that Nigeria has a good chance of becoming a key supplier to other African countries, especially with the opportunities created by the African Continental Free Trade Area.

The head of AFAN, Dr. Faruk Rabiu Mudi, responded positively to the initiative. He pledged that the association would encourage its members to participate in the commercial outgrower scheme. He also acknowledged the gap between domestic sugar output and national demand, stressing that reversing the trend would require a shared effort between government and farmers.

Bakrin emphasized that the sugar industry can play a significant role in the national economy and in reducing pressure on foreign exchange. He noted that investing in sugarcane production is both economically sound and aligned with long-term development goals.

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