Investment Opportunities

Nigeria’s sugar sector transformation requires substantial investment – estimated at $4.5 billion to achieve the NSMP’s ambitious goals of 2 million MT annual production and cultivate 250,000 hectares.

Tailored Pathways : Find Your Ideal Investment Entry Point

The NSDC welcomes credible investors across various scales and structures, offering distinct pathways to participate in this growth story. These opportunities are aligned with the National Sugar Master Plan (NSMP), a comprehensive strategy to achieve self-sufficiency in sugar production.

Commercial Out grower Farm

Commercial Out grower Farm

Commercial sugarcane farming offers a more accessible entry point into Nigeria’s sugar value chain, requiring less capital than fully integrated operations while still delivering attractive returns on investment.

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Commercial Farming Programme

Commercial Sugarcane Outgrower Farming: The Accessible Path to Nigeria's Sugar Revolution

Commercial sugarcane farming offers a more accessible entry point into Nigeria’s sugar value chain, requiring less capital than fully integrated operations while still delivering attractive returns on investment.

This approach allows a wider range of investors to participate in the sector’s growth while supporting the National Sugar Master Plan’s objectives.

Key Objectives of Commercial Sugarcane Outgrower Programme

The goal of the commercial sugarcane outgrower programme by the NSDC is to scale up local sugarcane production and create a peaceful co-existence between the sugar operators and their host communities in a manner that engenders development and improvement of livelihood for the communities. Specifically, the key objectives include:

  • Increase sugarcane production to meet the growing national demand for raw materials essential for refined sugar manufacturing and other derivatives.

  • Empower farmers and rural communities by providing smallholders and commercial farms with resources, training, and financial support to improve productivity.

  • Promote sustainable agricultural practices by implementing best practices in environmental conservation, efficient land use, and water management.

  • Enhance market access and price stability through guaranteed offtake agreements and fair pricing mechanisms, making sugarcane farming a profitable and sustainable business case.

Eligibility Criteria

Corporate Documentation

  • Certificate of Incorporation (CAC), including Forms CAC 2 and CAC 7 (or CAC 1.1).
  • Valid Income Tax Clearance Certificate for 2021–2023 (valid until December 31, 2024).

Technical Proposal 

  • Detailed approach to implementing the outgrower scheme, including farming and yield improvement methods.
  • Company profile with an overview, key staff, and relevant CVs.

Eligibility Criteria 

• Minimum of 50-100 hectares under cultivation with three years’ cash crop farming experience, preferably sugarcane.
• Records of the last three farming cycles, including crop types, quantities, and market details (local or export).
• Verified production figures showing stable or increasing output trends.
• Proven use of sustainable farming practices (certifications are a plus).
• Financial stability with proof of prior investments and a clean credit history.
• Capacity for large-scale farming with adequate staff, infrastructure, and technical expertise.
• Compliance with NSDC regulations and no regulatory violations.

Sworn Affidavit for Confirmation of no conflicts of interest with NSDC or Bureau of Public
Procurement and accuracy of all submitted information.

Evidence of financial capability to execute the project by submission of Reference Letter from
a reputable commercial bank in Nigeria

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Partner with Nigeria to achieve sugar self-sufficiency, capitalize on a $10+ billion sugar and bio-product market, and drive sustainable growth.

Greenfield Development

Greenfield Development

For investors seeking to shape a project from its inception, Nigeria’s greenfield sugar opportunities offer immense potential.

 

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Greenfield Projects Pipeline

Pioneering the Future: Build Sustainable Sugar Ecosystems from Scratch

For investors seeking to shape a project from its inception, Nigeria’s greenfield sugar opportunities offer immense potential.

These projects involve developing entirely new, integrated estates on carefully selected sites with ideal conditions for sugarcane cultivation and processing.

This allows for the implementation of the latest, most efficient technologies and sustainable practices right from the start.

Optimal Site Selection

Optimal Site Selection

Freedom to select locations with ideal growing conditions, water access, and logistics connections without being constrained by legacy decisions.

Modern Technology Integration

Modern Technology Integration

Implement cutting-edge automation, precision agriculture, and processing technologies from day one without retrofitting challenges.

Sustainability By Design

Sustainability By Design

Design operations with environmental sustainability as a core principle, from water conservation systems to renewable energy integration.

Customized Scale

Customized Scale

Tailor the operation’s size and scope precisely to investment capacity and market opportunity without inherited constraints.

Investment Ready Greenfield Projects

Illaj Sugar (Kaduna)

Developing 6,000 ha near River Gilma, targeting 3,000 TCD capacity. Backed by Illaj Holdings, experienced in agro-processing.

Project Details

Location

Kaduna State, Northern Nigeria

Water Source

River Gilma with year-round water availability

Est. Investment Required

$280 million initial investment

Land size

6,000 hectares with potential for expansion to 10,000 hectares

Factory Capacity

Initial capacity of 3,000 TCD, expandable to 5,000 TCD

Promoter

Illaj Holdings, with established success in rice and flour milling

UMZA Sugar (Bauchi)

Planned 10,000 ha near River Jamaare, initial 1,000 TCD capacity. Promoter UMZA brings experience from large-scale rice farming.

Project Details

Location

Bauchi State, Northeastern Nigeria

Water Source

River Jamaare with reliable flow rates

Est. Investment Required

$195 million for full development

Land size

10,000 hectares of prime agricultural land

Factory Capacity

Initial capacity of 1,000 TCD, scalable to 3,000 TCD

Promoter

UMZA Group, with strong track record in integrated agriculture

Brent Sugar (Oyo)

Planned 10,000 ha near River Jamaare, initial 1,000 TCD capacity. Promoter UMZA brings experience from large-scale rice farming.

Project Details

Location

Bauchi State, Northeastern Nigeria

Water Source

River Jamaare with reliable flow rates

Est. Investment Required

$195 million for full development

Land size

10,000 hectares of prime agricultural land

Factory Capacity

Initial capacity of 1,000 TCD, scalable to 3,000 TCD

Promoter

UMZA Group, with strong track record in integrated agriculture

Land Bank

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Project Matching

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Partner with Nigeria to achieve sugar self-sufficiency, capitalize on a $10+ billion sugar and bio-product market, and drive sustainable growth.

Brownfield Expansion

Brownfield Expansion

Partner with Nigeria’s established sugar giants to inject capital for expansion of existing operations, upgrading facilities, and enhancing operational efficiencies.

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Brownfield Projects

Scale with Speed: Invest in the Expansion of Nigeria's Sugar Champions

Investing in Brownfield projects means partnering with Nigeria’s most experienced sugar producers.

These companies have already navigated the complexities of establishing operations, building supply chains, and achieving market presence.

Your investment fuels the next stage of their growth under the National Sugar Master Plan’s Backward Integration Program (BIP), accelerating the journey towards self-sufficiency.

Immediate Market Access

Investing in established operations means accessing existing sales channels, customer relationships, and market intelligence – reducing commercialization risk and accelerating return on investment.

Operational Experience

Benefit from teams that have already navigated Nigeria’s sugar production challenges, with established protocols for everything from cane cultivation to factory operations and regulatory compliance.

Expansion Efficiency

Expanding existing operations typically achieves economies of scale more efficiently than greenfield developments, with incremental capital yielding proportionally higher returns.

Community Relationships

Leverage established connections with local communities, government entities, and outgrower networks – critical success factors that take years to develop from scratch.

Brownfield Projects

Dangote Sugar Refinery (DSR)

Nigeria’s largest sugar player, owning the expansive Savannah Sugar estate (Numan, Adamawa) and developing a massive site at Tunga, Nasarawa

$2 Billion

Indicative Investment Need

(Equity: $600M, Debt: $1.4B)

Expansion Vision

Significantly increasing land under cane and milling capacity to reach 720,000 MT annual sugar production

LASUCO Sugar Company (BUA Foods Plc)

West Africa’s second-largest refiner with facilities in Lagos & Port Harcourt. Actively developing the Lafiagi estate (Kwara)

$645 Million

Indicative Investment Need

(Equity: $190M, Debt: $455M)

Expansion Vision

Growing the Lafiagi estate and associated milling capacity for 295,000 MT annual sugar production

Golden Sugar Company (Flour Mills of Nigeria Plc)

Operates the Sunti Golden Sugar Estate (Niger State) and a 750,000 MT refinery in Lagos

$745 Million

Indicative Investment Need

(Equity: $600M, Debt: $1.4B)

Expansion Vision

Developing further land and increasing milling capacity for 300,000 MT annual sugar production

Bacita Sugar Company (KIA Group)

Nigeria’s pioneering sugar estate (established 1961) located on highly fertile, well-watered land in Kwara

$270 Million

Indicative Investment Need

(Equity: $80M, Debt: $190M)

Expansion Vision

Bringing the estate back into full production, targeting 100,000 MT annually with a new 7,000 TCD factory

Get in Touch

Contact Us

Partner with Nigeria to achieve sugar self-sufficiency, capitalize on a $10+ billion sugar and bio-product market, and drive sustainable growth.

Investment Models

The NSDC welcomes credible investors across various scales and structures, offering distinct pathways to participate in this growth story. These opportunities are aligned with the National Sugar Master Plan (NSMP), a comprehensive strategy to achieve self-sufficiency in sugar production.

Joint Venture

Partner with existing sugar companies or the NSDC to share resources, risks and returns.

Full Ownership

Establish and operate independent sugar operations with complete control.

Public-Private Partnership

Collaborate with state governments to develop sugar estates on favorable terms.

The Nigeria Sugar Master Plan (NSMP)

The National Sugar Master Plan (NSMP) is Nigeria’s blueprint for revolutionizing its sugar industry. With the goal of reducing dependency on imported sugar, creating jobs, and boosting economic development, NSMP is setting the stage for a self-sufficient, sustainable, and thriving sugar sector.

1

NSMP Launch (2013)

The Nigerian Sugar Master Plan was launched to achieve self-sufficiency in sugar production.

2

Phase 1 Review (2017 )

Initial implementation phase reviewed, with adjustments made to address challenges.

3

NSMP Extension (2023)

The Nigerian government extended the Sugar Master Plan for an additional 10 years to 2033.

4

Target Year (2033)

Nigeria aims to achieve complete self-sufficiency in sugar production by this date.

Market Data

Nigeria’s sugar market presents a compelling investment case based on strong local demand, limited domestic supply, and supportive policy environment.

1.8 million MT

Annual sugar consumption in Nigeria

+3.5% CAGR

35,000 MT

Avg annual sugar
production

< 3% of consumption

$2 billion

Nigerian
Market size

Sugar only

$7 billion

African
Market size

Sugar only

Investment Incentives

Nigeria offers substantial incentives to support sugar industry investments, reducing costs and enhancing returns for qualified projects aligned with the National Sugar Master Plan.

Pioneer Status

Income tax holiday for 3-5 years for qualified sugar projects

Companies engaged in sugar production can enjoy up to 5 years of corporate income tax exemption under the Pioneer Status Incentive administered by the Nigerian Investment Promotion Commission.

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Import Duty Exemptions

Reduced or zero duties on sugar processing equipment

The Nigerian Customs Service offers concessionary import duty rates (often 0-5%) for machinery, equipment and spare parts imported for sugar processing operations.

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VAT Exemption

Reduced or zero duties on sugar processing equipment

Under Nigeria’s VAT regulations, locally manufactured sugar products enjoy favorable treatment to support domestic production over imports.

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Land Access Support

Facilitation of land acquisition through NSDC

The NSDC works with state governments to help investors navigate the complex process of securing agricultural land with proper title documentation.

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Export Incentives

Export expansion grants for sugar products

Under Nigeria’s Export Expansion Grant scheme, qualified exporters of sugar and sugar by-products can receive financial incentives based on export volume.

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Import Duty Exemptions

Reduced or zero duties on sugar processing equipment

The Nigerian Customs Service offers concessionary import duty rates (often 0-5%) for machinery, equipment and spare parts imported for sugar processing operations.

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Beyond Sugar

Expanded By-Product Market

There are significant opportunities in high-value  by-products and derivatives 

10
Sugarcane processing yields much more than sugar.
There are significant opportunities in high-value by-products and derivatives such as
  biofuels, polymers, bio-plastics, animal feeds and electricity

Ready to Explore Investment Opportunities?

Contact the Nigeria Sugar Development Council to discuss how you can participate in the transformation of Nigeria’s sugar industry.