Nigeria’s sugar sector key to $1trn economy target

Abuja, Nigeria: The Federal Government has spotlighted the sugar industry as a strategic pillar in its ambition to grow Nigeria’s economy to $1 trillion, according to the Minister of Industry, Trade and Investment, Dr John Owan Eno.

Speaking during a public hearing at the House of Representatives on the proposed amendment to the National Sugar Development Council (NSDC) Act, Dr Eno highlighted the sector’s potential to drive rural development, create jobs, and contribute meaningfully to national revenue. He, however, expressed concern over the industry’s limited impact, despite more than $2 billion in incentives disbursed under the National Sugar Masterplan’s initial phases.

The Minister called for enhanced accountability and stronger policy execution to unlock the sector’s full economic potential, noting that current production levels fall significantly short of expectations.

Also addressing the hearing, NSDC Executive Secretary, Kamar Bakrin, underscored the Masterplan’s targets of generating 100,000 new jobs, boosting rural infrastructure, and saving $1 billion annually in foreign exchange. He estimated that $4.5 billion in investments would be required to achieve these outcomes, stressing the need for consistent and investor-friendly policies.

Bakrin expressed concern over a recent policy directive mandating that 50% of sugar levy collections be redirected to the government’s consolidated revenue fund. He warned that such measures could undermine the development trajectory of the industry, as the levies were originally earmarked to support sectoral growth initiatives.

Chairman of the House Committee on Industry, Hon. Enitan Badru, described the amendment bill as crucial to strengthening the NSDC’s regulatory framework. He called on stakeholders to align efforts towards building a competitive and sustainable sugar industry that supports job creation and broader economic development.

Representatives of major industry players, including BUA Group and Flour Mills Nigeria, reaffirmed their support for the Masterplan, with BUA revealing ongoing investments in 50,000 hectares of sugar plantations. Nonetheless, they cautioned lawmakers to consider the economic consequences of abrupt regulatory changes.

Meanwhile, the National Agency for Food and Drug Administration and Control (NAFDAC) endorsed enhanced powers for the NSDC but advocated for clear delineation of regulatory roles to prevent jurisdictional overlap, particularly in food safety oversight.

The hearing concluded with a broad consensus on the need for legislative reform and coordinated stakeholder action to revitalise Nigeria’s sugar industry. Participants agreed that a robust and well-regulated sugar sector could play a key role in achieving the country’s long-term economic transformation and foreign exchange sustainability targets.

By Taiwo Olatinwo/May 23,2025