Nigeria’s drive to build a competitive domestic sugar industry has received a major boost as the National Sugar Development Council and the Bank of Industry unveiled a ₦10 billion Sugar Project Acceleration Fund (SPAF) to support the development of new sugar projects across the country.

The initiative is designed to provide technical preparation, financing support and project development services to promoters of greenfield sugar projects, helping them convert early-stage ideas into investment-ready ventures capable of attracting large-scale financing.

Announcing the programme, the Executive Secretary of the NSDC, Kamar Bakrin, said the fund represents a strategic effort to accelerate Nigeria’s long-standing ambition of building a sustainable domestic sugar industry.

According to him, the fund will support credible promoters seeking to establish large-scale sugar estates and processing facilities.

“The facility is designed to help transform early-stage sugar project ideas into bankable investments capable of attracting financing from development finance institutions and impact investors,” Bakrin said.

Bridging the Gap Between Ideas and Investment

Bakrin explained that many sugar projects struggle to attract funding because they fail to meet the rigorous technical and financial standards required by international investors.

He noted that access to capital alone does not automatically translate into sugar production, particularly when projects lack proper feasibility studies, credible financial models and detailed implementation plans.

Development finance institutions often manage billions of dollars for agro-industrial investments, but they require projects that demonstrate:

• Strong agronomic planning
• Infrastructure readiness
• Realistic implementation timelines
• Environmental and social governance compliance

Many promoters, he said, find it difficult to meet these requirements because the cost of preparing investor-ready projects is often too high.

The Sugar Project Acceleration Fund is therefore structured as a pre-investment facility, providing advisory, technical and financial support to help project promoters develop credible investment proposals.

Bakrin emphasised that SPAF is not a grant programme, but a structured financing mechanism with clear eligibility requirements and deliverables.

BOI to Manage Fund Operations

Under the programme, the Bank of Industry will serve as the fund manager, overseeing credit appraisal, risk management, loan disbursement and monitoring of funded projects.

An official of BOI, Hadiza Shuaib, said the bank will ensure that projects are properly structured and that risks are effectively managed throughout the funding cycle.

According to her, the programme will also incorporate skills development and capacity building to strengthen long-term sustainability within the sugar value chain.

She added that only businesses engaged in sugar production or related activities will qualify to access the fund.

Promoters Position for New Sugar Projects

Several prospective investors attended the unveiling session, including promoters of companies such as Illaj Sugar, Brent Foods, Crystal Sugar, Legacy Sugar, Saro Sugar, Awaa, Ganic and Confluence Sugar.

Participants were briefed on the eligibility criteria, application procedures and project development requirements needed to access the facility.

The programme is expected to stimulate new greenfield sugar estates, processing plants and integrated agro-industrial projects, helping expand Nigeria’s sugar production capacity.

Officials say the initiative aligns with Nigeria’s broader ambition to reduce dependence on imported sugar and strengthen the country’s agro-industrial base.

BRANDECONOMY Insight

The ₦10 billion Sugar Project Acceleration Fund represents a strategic attempt to address one of the most persistent challenges in Nigeria’s agro-industrial sector — the gap between policy ambition and bankable project development.

1. Nigeria’s Sugar Self-Sufficiency Challenge

Despite decades of policy interventions, Nigeria remains heavily dependent on imported sugar. Domestic production has struggled due to weak project financing, infrastructure gaps and slow project execution.

2. Project Preparation as the Missing Link

Many agro-industrial initiatives fail not because investors lack interest but because projects are poorly structured. By focusing on pre-investment preparation, SPAF aims to build a pipeline of credible projects capable of attracting larger capital inflows.

3. Sugar as a Strategic Agro-Industrial Sector

Beyond food supply, sugar projects can catalyse rural industrialisation, create jobs and stimulate value chains across agriculture, logistics and manufacturing.

If properly implemented, the programme could help Nigeria transition toward a more competitive sugar industry and reduce import dependence in one of its most important agro-industrial commodities.