The Nigeria Governors’ Forum (NGF) has resolved to place sugar production at the centre of its strategy for driving industrial growth and economic diversification across the states. The decision signals a renewed push to strengthen domestic sugar production, reduce dependence on imports, and unlock large-scale investment opportunities within the sector.
According to a statement issued by the National Sugar Development Council (NSDC) on Sunday, the governors also agreed that sugar-related projects should be treated as priority initiatives in discussions with local and international development partners. This move is expected to improve access to funding, technical support, and long-term partnerships needed to expand the industry nationwide.
The resolutions followed a presentation by the NSDC, which is responsible for regulating and developing Nigeria’s sugar industry. The council urged state governments to take a more active role in sugar production as a pathway to job creation, industrialisation, and national self-sufficiency. Central to the proposal was a call to significantly reduce, and ultimately halt, the importation of raw sugar in favour of locally produced alternatives.
Under the new framework, the NGF and NSDC will work closely to help states design sugar projects that are attractive to investors. This includes supporting states to develop bankable project plans, coordinating engagement between governments, investors, and industry operators, and addressing key bottlenecks such as access to land, infrastructure development, and investment incentives. The collaboration is also aimed at ensuring better alignment between federal policies and state-level implementation.
During the engagement, NSDC Executive Secretary and Chief Executive Officer, Kamar Bakrin, outlined the scale of opportunities available in the sugar sector and encouraged governors, particularly those in agriculturally suitable regions, to take advantage of them. He identified 11 states with favourable conditions for commercial sugarcane farming: Oyo, Kwara, Niger, Nasarawa, Kaduna, Kano, Bauchi, Gombe, Jigawa, Adamawa, and Taraba.
Bakrin pointed to recent economic shifts that have improved the outlook for local sugar production. He explained that although global sugar prices have remained relatively stable, changes in Nigeria’s exchange rate have made sugar imports far more costly. In contrast, locally produced sugar benefits from lower exposure to foreign exchange risks, since most production inputs are sourced domestically and paid for in naira. This, he said, has significantly improved the profitability of local operations.
He further noted that Nigeria possesses strong natural and policy advantages that support large-scale sugar investments. The country has an estimated 1.2 million hectares of land suitable for sugarcane cultivation, far more than the roughly 200,000 hectares required to meet national demand. Combined with available water resources, labour, and existing policy incentives, Bakrin said Nigeria is well positioned to achieve self-sufficiency and become a competitive player in the regional sugar market.
On the industry’s economic value, Bakrin estimated the Nigerian sugar market at about $2 billion, with the wider African market boosted by the African Continental Free Trade Agreement valued at roughly $7 billion. He added that sugar by-products, including ethanol, animal feed, and bio-energy, represent an additional $10 billion opportunity within Nigeria alone.
Addressing concerns around land use and social impact, Bakrin stressed that sugar projects are designed to include host communities rather than displace them. He explained that outgrower schemes and employment opportunities allow local populations to participate directly in the value chain, supporting inclusive growth, rural development, and environmental sustainability.
He cited a typical large-scale sugar project producing 100,000 metric tonnes annually, requiring about $250 million in investment, with an estimated internal rate of return of 24 per cent. Such projects, he noted, also generate high-value by-products like ethanol and bio-electricity, further improving their commercial appeal.
Speaking on behalf of the governors, NGF Director-General, Abdulateef Shittu, said several states are already involved in sugar-related initiatives, while others have expressed strong interest in entering the sector. He emphasised that realising the full potential of these opportunities will depend on effective coordination, credible investment structures, and strong cooperation between federal and state governments.
Shittu reaffirmed the commitment of the NGF secretariat to ensure that sugar development becomes a core component of state economic planning, highlighting its capacity to stimulate rural economies, attract investment, and create sustainable jobs.
