NSDC unveils pipeline of 10 greenfield projects to deliver 800,000MT of sugar

The National Sugar Development Council (NSDC) has unveiled a pipeline of 10 greenfield sugar projects expected to deliver 835,000 metric tonnes (MT) of sugar annually at full capacity. The projects form a central part of the Council’s $7.1 billion, 10-year program to raise Nigeria’s annual sugar production beyond 2 million MT and save about $2.1 billion in foreign exchange every year.

NSDC Executive Secretary/CEO Kamar Bakrin disclosed this in a presentation to the new leadership of the Commerce and Industry Correspondents Association of Nigeria (CICAN), who paid him a courtesy visit. He outlined the Council’s strategy for achieving sugar self-sufficiency through expanded production, new investments, and improved productivity.

Inside the Greenfield Pipeline

The NSDC said the 10 greenfield projects have moved beyond concept, with the following already in place:

● Credible Promoters identified for all 10 projects
● 143,478 hectares of land secured
● 55,500 TCD of planned milling capacity
● Integrated design: each estate is designed to produce sugar, ethanol, and power

To ensure they meet bankable standards, all the projects are undergoing independent technical reviews.

Three Interventions Behind the 2 Million MT Target

The greenfield projects are one of three key interventions anchoring the program. The others are optimizing existing estates and accelerating the expansion of incumbent operators. Together, the three are designed to close the production gap as follows;

Existing estates: about 100,000 MT annually.

● Incumbent operators: 1.22 million MT annually, equivalent to about two-thirds of current national demand.
● Ten greenfield estates: about 835,000 MT annually at full capacity.

Combined, 13 projects are projected to produce more than 2 million MT of sugar yearly, above current domestic demand.

Farmers at the Heart of Cane Supply

The Council is also working with farmers around existing mills to increase cane supply, with 11,000 hectares targeted for farmer-grown sugarcane. So far, 7,000 hectares (64 percent of the target) have been identified with partners in Kwara, Niger, and Adamawa, The initiative is expected to supply 880,000 MT of cane to existing mills and produce about 88,000 MT of sugar annually.

Financing the Program

The 10-year program requires $7.1 billion, made up of $5 billion in debt and $2.1 billion in equity. The debt component is expected to come from:

● Export credit agencies: about $3 billion
● Development finance institutions: $1.75 billion
● Local development finance institutions: $250 million

Building the Skills and Seed Pipeline

To address the sector’s shortage of quality planting materials and technical expertise, the Council has strengthened the Nigeria Sugar Institute (NSI), to provide training and extension services, planting materials and project evaluation and estate support.

Economic and Environmental Gains

Successful implementation will deliver benefits well beyond sugar production. The NSDC projects that domestic production of sugar and ethanol will:

● Save about $2.1 billion in foreign exchange annually
● Create 110,000 direct and indirect jobs and impact more than one million livelihoods across the value chain
● Grow the GDP of host communities by more than 100 percent over 10 years
● Cut annual emissions by about 2 million MT of carbon dioxide equivalent

The Council is moving from policy commitments to measurable implementation, with estate performance to be monitored physically and through satellite technology.

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