The Nigeria Governors’ Forum has agreed to prioritise sugar as a key product to accelerate industrial development across states in the country.
The Forum also accepted proposals to include sugar projects as priority beneficiaries in engagements with development partners both within and outside Nigeria.
These decisions followed requests by the National Sugar Development Council, which is mandated to develop the sugar sector, to halt raw sugar imports, create jobs, and achieve self-sufficiency in sugar production, according to a statement on Sunday by the NSDC.
The NGF and NSDC will now collaborate to support states in preparing investor-ready sugar projects, facilitating structured engagement between state governments, investors, and industry operators, and improving coordination around land access, infrastructure provision, and incentive frameworks.
Executive Secretary and CEO of NSDC, Mr.Kamar Bakrin, presented the sector’s investment opportunities to NGF officials, urging governors in viable sugarcane cultivation areas to embrace sugar project development. He identified 11 states with suitable lands for profitable sugar production: Oyo, Kwara, Niger, Nasarawa, Kaduna, Kano, Bauchi, Gombe, Jigawa, Adamawa, and Taraba.
Bakrin highlighted recent macroeconomic developments that have boosted the competitiveness and profitability of local sugar production. “While global sugar prices have remained relatively stable in dollar terms, exchange rate movements have made imports significantly more expensive, thereby enhancing the commercial viability of domestically produced sugar, whose inputs are largely naira-denominated,” he said.
He emphasised that Nigeria now has strong operational fundamentals for sugar production, noting that approximately 1.2 million hectares of prime land are suitable for large-scale sugarcane cultivation, even though only 200,000 hectares are needed to achieve self-sufficiency. “The availability of suitable land, water resources, labour, and policy incentives positions Nigeria favourably for large-scale sugar investments,” Bakrin added.
On the sector’s economic potential, he said: “The Nigerian sugar industry is now worth $2bn, and with the aid of the African Continental Free Trade Agreement, it is worth $7bn across the continent. The market for sugar by-products alone is worth $10bn in Nigeria.”
Addressing community involvement, Bakrin noted, “The Nigerian sugar industry does not displace communities; instead, it integrates them into the value chain as partners, workers, and stakeholders through outgrower schemes and employment opportunities. Sugarcane projects will empower host communities, promote inclusive development, and support environmental sustainability.”
He also cited a model sugar project producing 100,000 metric tons annually, which requires an estimated $250m investment, delivers a 24 per cent internal rate of return, and generates valuable by-products including ethanol and bio-electricity.
Speaking on state-level engagement, Director-General of the NGF, Dr Abdulateef Shittu, noted that many state governments are already involved, or are keen to participate, in sugar-related investments across land development, agricultural schemes, and agro-industrial initiatives.
He stressed that unlocking these opportunities requires effective coordination, credible investment frameworks, and strong alignment between federal policy objectives and state development priorities.
Shittu pledged the commitment of the NGF secretariat to ensure state-level development priorities begin to focus on sugar projects, recognising their potential for rural development and job creation.
