Tinubu’s Reforms Make Nigeria’s Sugar Self-Sufficiency Achievable, Says NSDC Boss, Kamar Bakrin

The Executive Secretary and Chief Executive Officer of the National Sugar Development Council (NSDC), Mr. Kamar Bakrin, has said President Bola Tinubu’s macroeconomic reforms have made local sugar production more attractive to investors and strengthened Nigeria’s prospects of achieving sugar self-sufficiency. Bakrin, who spoke at the 32nd Nigerian Economic Summit (NESG #32) during a panel session on ‘Strengthening Policy Coordination for the Non-alcoholic Drink Sector Competitiveness’, said the reforms had brought greater stability to the economy, adding that the next priority was to translate that stability into economic growth that benefits ordinary Nigerians. He identified job creation, particularly for young people, rural livelihoods, security, foreign exchange pressures, food security and the cost of living as pressing national priorities, noting that the sugar value chain could contribute to addressing several of these challenges simultaneously. “Our most pressing priorities are well known: jobs, especially for young people; rural livelihoods; security, pressure on foreign exchange; food security; and the cost of living. “Every government must make choices among competing priorities. Our contribution as a Council is to make sure that, when those choices are made, the full economic picture of the sugar value chain is on the table. This is because very few sectors touch all of these priorities at once the way sugar does.” According to him, Nigeria’s sugar and beverage industries should be viewed as interconnected parts of a single value chain, from sugarcane cultivation to the production of bottled drinks. He noted that the beverage industry was Nigeria’s largest industrial consumer of sugar, arguing that policies that strengthen domestic sugar production would also improve the competitiveness of beverage manufacturers. Under the Nigeria Sugar Master Plan (NSMP) 2.0, the country aims to achieve self-sufficiency in sugar production, a target Bakrin said would save approximately $1 billion in foreign exchange annually and generate about 110,000 direct jobs, predominantly in rural communities. He explained that the jobs would be created across sugar estates, processing mills and outgrower farms, where smallholder farmers cultivate sugarcane for processing companies. Beyond employment and foreign exchange savings, Bakrin said sugar estates could stimulate rural development through the provision of infrastructure and essential services. “The gains go beyond the factory gate. Sugar estates bring roads, schools, clinics and electricity generated from bagasse, the fibre left after cane is crushed,” he said. He added that sugarcane could also support the production of fuel ethanol, bio-electricity and biodegradable packaging, aligning the industry with the circular-economy agenda. On investment, Bakrin disclosed that brownfield investors had committed to producing 1.22 million metric tonnes of sugar annually by 2030, two years ahead of the 2032 timeline stipulated in the master plan. He said greenfield projects were expected to contribute an additional 830,000 metric tonnes of annual production capacity by 2030. However, the NSDC chief stressed that sustaining investor confidence would depend on consistent government policies and a predictable regulatory environment. According to him, sugar estates require long-term capital commitments, with projects taking at least four years from land clearing to full production. “A sugar estate takes at least four years from land clearing to full production, with capital committed long before the first tonne is sold. Investors therefore look for stable demand and a predictable policy environment,” he said. Bakrin acknowledged the government’s public-health objectives, including efforts to tackle non-communicable diseases, but maintained that such objectives could be pursued alongside industrial development. “We are not asking anyone to choose between health and industry,” he said. He explained that investors considered both the stability of demand for sugar and the predictability of government policies when deciding whether to commit capital to local production. Consequently, he proposed that fiscal and regulatory measures affecting the sugar and beverage value chain should be assessed for their implications for employment, investment and the implementation of the NSMP before being finalised. He also called for reasonable transition periods when such policies are introduced, using established mechanisms to minimise disruption to existing and planned investments. Bakrin further urged beverage manufacturers to support domestic sugar production by committing to local sourcing, supporting outgrower farmers, sharing market data and investing in the Backward Integration Programme (BIP). He said stronger collaboration between government and industry would help build a sustainable domestic supply chain, retain jobs within the country and reduce dependence on imported sugar. “When government protects the conditions for demand, and industry commits to local supply, the whole value chain grows, and the jobs stay in Nigeria,” he said. The NSDC boss also recommended that the Nigeria Industrial Policy Sectoral Competitiveness and Growth Initiative (NSCGI) adopt alignment with the Sugar Master Plan as one of its performance measures. He said closer coordination between the sugar and beverage industries would strengthen employment generation, conserve foreign exchange and improve rural prosperity. “When the sugar sector and the beverage sector grow together, Nigeria wins on jobs, on foreign exchange, and on rural prosperity,” Bakrin added.