Nigeria could save approximately $1bn in foreign exchange annually and create 110,000 direct jobs by achieving self-sufficiency in sugar production, according to the National Sugar Development Council.
The initiative forms part of the government’s efforts to reduce dependence on imported sugar, strengthen domestic manufacturing and encourage investment in agriculture.
The Executive Secretary and Chief Executive Officer of the council, Kamar Bakrin, disclosed the projections during the recently concluded 32nd Nigerian Economic Summit in Abuja.
According to a report published by Punch Newspapers on October 29, Bakrin said expanding the domestic sugar industry could contribute significantly to employment, rural development and foreign exchange conservation.
He explained that Nigeria’s economic priorities include job creation, rural livelihoods, food security and reducing pressure on foreign exchange.
The council believes that increasing local sugar production could help address several of these challenges.
Nigeria’s dependence on imported sugar
Nigeria remains heavily dependent on imported sugar despite years of efforts to develop domestic production.
The country consumes approximately 1.7 million metric tonnes of sugar annually, while domestic production was estimated at 105,000 tonnes during the 2025/2026 marketing year.
The United States Department of Agriculture’s Foreign Agricultural Service projected imports of approximately 2.03 million tonnes during the period, including raw sugar for refining and refined sugar measured in raw sugar equivalent.
The figures demonstrate the significant difference between local production and national demand.
This dependence means that Nigerian businesses and manufacturers remain exposed to international supply conditions and foreign exchange requirements.
Sugar is an important industrial input used by beverage manufacturers, food processors and other businesses.
A shortage or increase in the cost of imported sugar can therefore affect production expenses and consumer prices.
The government wants to address this challenge by encouraging more investment in local sugarcane cultivation and processing.
Nigeria Sugar Master Plan 2.0
The National Sugar Development Council is relying on the Nigeria Sugar Master Plan 2.0 to guide efforts towards achieving domestic self-sufficiency.
The plan is intended to encourage investment in sugar estates, agricultural production and processing facilities.
Bakrin said existing investors were expanding production facilities and had committed to achieving annual output of 1.22 million tonnes by 2030.
New sugar projects are also expected to contribute an additional 830,000 tonnes of annual capacity by the same year.
Together, the projected capacity would amount to approximately 2.05 million tonnes annually.
However, these figures represent investment commitments and projected capacity rather than actual production already achieved.
The difference is important because the country must still overcome challenges affecting the development of the industry.
Employment and rural development
One of the major expected benefits of expanding sugar production is employment creation.
The council estimates that achieving self-sufficiency could generate approximately 110,000 direct jobs.
These opportunities are expected to come from sugar estates, agricultural farms, processing facilities and businesses supporting the industry.
The development could also benefit rural communities by increasing demand for agricultural labour, transportation, equipment and other services.
Farmers supplying sugarcane to processing companies could gain access to more organised markets.
In addition, stronger local processing capacity could encourage investment in agricultural infrastructure and improve economic activities in areas where sugar projects are established.
Challenges facing the industry
Despite the projections, Nigeria’s sugar industry faces several obstacles.
High production costs, inadequate infrastructure, limited investment and inconsistent policy implementation have affected the expansion of domestic production.
Sugar cultivation also requires substantial investment in land preparation, irrigation, machinery, processing facilities and transportation.
Companies must be able to produce sugar at competitive costs if locally manufactured products are to compete effectively with imported alternatives.
The government will therefore need to create an environment that encourages long-term investment and supports farmers and processors.
The availability of reliable electricity, suitable infrastructure and access to financing will also be important.
Economic implications
If successfully implemented, increased domestic sugar production could reduce the amount of foreign exchange spent on imports.
It could also strengthen Nigeria’s manufacturing sector and provide more opportunities for local agricultural businesses.
However, the projected $1bn annual savings will depend on the industry achieving its production targets and reducing the country’s reliance on foreign supplies.
The government and investors must therefore translate existing commitments into operational projects capable of delivering measurable output.
Nigeria’s ambition to become self-sufficient in sugar production represents an important opportunity for agriculture and manufacturing.
The real test will be whether the planned investments can close the gap between domestic supply and national demand by 2030.
