FG woos investors to boost sugar production
The National Sugar Development Council in Nigeria is actively promoting investment opportunities in the country's sugar industry for both domestic and international investors.
With a strong local demand estimated at around two million metric tonnes per year, translating to approximately $2 billion in value, the sector offers considerable prospects.
During a recent gathering with business journalists in Lagos, Kamar Bakrin, the Executive Secretary of NSDC, pointed out the potential to tap into the $7 billion African export market, as reported by The Punch.
Bakrin stated that the substantial and increasing domestic demand makes this enterprise both feasible and lucrative.
He further mentioned that Nigeria is well-placed to satisfy both local and broader African sugar demands, considering the continent’s expansive $7 billion export market.
The head of the NSDC highlighted that recent fluctuations in currency have made local sugar production more competitive, enhancing its appeal.
However, these currency changes also create difficulties for importers, emphasizing the necessity of investing in domestic production.
Bakrin remarked that the economic arguments are strong, with attractive high Net Present Value and Internal Rate of Return achievable at a viable scale, alongside financing opportunities that suit the business requirements.
He assured that the Federal Government is dedicated to fostering investments through supportive legislation and a robust incentive framework in line with the NSDC’s Backward Integration Plan.
At the meeting, Bakrin rolled out a community integration model designed to promote sustainability and stability within the sugar industry.
He detailed that operators of sugar projects would need to direct part of their investments towards local development projects, such as schools, healthcare facilities, and infrastructure.
Moreover, the model requires that a portion of managerial job openings be reserved for local residents, encouraging community engagement and support.
“This approach guarantees that all community stakeholders gain advantages, making the industry more secure and sustainable,” he stated.
Bakrin also pointed out the range of high-value products that the sugar sector can generate, such as ethanol, bioplastics, and packaging materials, which would contribute additional value to the local economy.
The NSDC has declared the year 2025 as ‘the year of acceleration’ for the sugar industry, pledging to secure the necessary funding and facilitate the involvement of both domestic and international investors.
Leave A Comment