State governors have moved to position sugar production as a strategic driver of industrialisation, import substitution and job creation, as the Nigeria Governors’ Forum (NGF) agreed to prioritise sugar projects across states with viable agricultural and industrial capacity.
The decision, taken at a meeting between the NGF leadership and the National Sugar Development Council (NSDC), marks a coordinated push to deploy sugar as a state-led industrial asset, with governors committing to support project development and elevate sugar investments in engagements with development partners within and outside Nigeria.
Under the arrangement, the NGF Secretariat will partner the NSDC to help states prepare investor-ready sugar projects, facilitate structured engagement between state governments, investors and industry operators, and strengthen coordination around critical enablers such as land access, infrastructure provision and incentive frameworks.
The Forum also agreed to classify sugar projects as priority beneficiaries in its development-partner engagements, signalling a shift toward agro-industrial investments with clear import-replacement and employment potential.
The commitments followed a presentation by the executive secretary and chief executive officer of the NSDC, Mr. Kamar Bakrin, who urged governors—through the NGF—to take advantage of what he described as an increasingly compelling investment case for domestic sugar production.
Bakrin identified 11 states with proven suitability for profitable sugarcane cultivation—Oyo, Kwara, Niger, Nasarawa, Kaduna, Kano, Bauchi, Gombe, Jigawa, Adamawa and Taraba—calling on them to embrace sugar project development as a pathway to industrial growth.
He said recent macroeconomic developments have significantly improved the competitiveness of local sugar production, noting that while global sugar prices have remained relatively stable in dollar terms, exchange rate movements have made imports more expensive.
“Exchange rate dynamics have enhanced the commercial viability of domestically produced sugar, whose inputs are largely naira-denominated,” Bakrin said.
According to him, Nigeria now has strong operational fundamentals to achieve sugar self-sufficiency. He said comprehensive assessments have identified about 1.2 million hectares of prime land nationwide suitable for large-scale sugarcane cultivation, even though only 200,000 hectares are required to meet national demand.
“The availability of suitable land, water resources, labour and policy incentives positions Nigeria favourably for large-scale sugar investments,” he said.
Bakrin told the NGF leadership that the domestic sugar sector is currently valued at about $2 billion, with continental opportunities expanding to $7 billion under the African Continental Free Trade Agreement (AfCFTA).
He added that the Nigerian market for sugar by-products—including ethanol and bio-electricity—is estimated at $10 billion.
He also stressed that sugar investments are designed to integrate host communities rather than displace them. “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,” he said, adding that sugarcane projects promote inclusive development and environmental sustainability.
To demonstrate commercial viability, Bakrin cited a model sugar project producing 100,000 metric tonnes annually, requiring about $250 million in investment and delivering an internal rate of return of approximately 24 per cent, alongside a positive net present value. He noted that revenues from ethanol and bio-electricity further strengthen project returns.
Responding, the director-general of the NGF, Dr. Abdulateef Shittu, said several state governments are already engaged—or keen to engage—in sugar-related investments spanning land development, agricultural schemes and agro-industrial initiatives.
He said unlocking these opportunities would require effective coordination, credible investment frameworks and strong alignment between federal policy objectives and state-level development priorities.
Shittu pledged that the NGF Secretariat would drive stronger state focus on sugar investments, citing their capacity to deliver rural development, job creation and sustainable industrial expansion.
