The National Sugar Development Council (NSDC) has signed a landmark Memorandum of Understanding with Chinese industrial giant, SINOMACH, to develop a sugarcane cultivation and processing project targeting the production of up to one million metric tonnes of sugar annually in Nigeria.
The agreement, announced in a statement on Sunday, is a major outcome of the Nigeria-China Strategic Partnership initiated by President Bola Ahmed Tinubu. It is expected to attract up to $1 billion in investments into Nigeria’s sugar sector.
Under the terms of the deal, SINOMACH will build a sugar production plant and establish a sugarcane plantation with an initial output of 100,000 metric tonnes annually.
However, the NSDC will facilitate all necessary authorisations and regulatory approvals for the project, which is projected to more than double Nigeria’s current local sugar output.
Speaking during the signing ceremony in Abuja, NSDC Executive Secretary and CEO, Mr. Kamar Bakrin, described the initiative as a vital move toward national food security and economic independence.
“2025 is a pivotal year during which we expect to make significant strides in our national journey,” he said. “A robust sugar industry will deliver several benefits to Nigeria, including job creation, rural infrastructure development, and foreign exchange savings by reducing sugar imports.”
Bakrin hailed the partnership as a model for Nigeria’s broader industrialisation efforts, emphasizing that the project would operate under an Engineering, Procurement and Construction (EPC) model with financing provided by SINOMACH.
“The signing of this MoU marks the beginning of what we anticipate will evolve into a long-term relationship capable of ultimately delivering as much as one million metric tonnes of locally produced sugar,” he added.
Vice President of SINOMACH, Li Xiao Yu, commended Nigeria’s dedication to its Sugar Master Plan, calling the partnership more than a commercial venture.
“We deeply admire this vision—it is not only an industrial policy but also a sweet revolution tied to food sovereignty and economic dignity,” he said.
He further highlighted the project’s potential to modernise Nigeria’s agricultural value chain, enhance sugar self-sufficiency, and generate employment across the country.
Li also revealed that SINOMACH is exploring RMB-based financing options to streamline funding and accelerate implementation.
“We are optimistic that the chosen host state for this project could become the ‘Sugar Bowl of West Africa,’” he concluded.
