Nigeria, China’s SINOMACH ink US$1B deal to boost local sugar production
The strategic partnership will create jobs, cut sugar imports, and support Nigeria’s goal of agro-industrial transformation.
NIGERIA – The National Sugar Development Council (NSDC) of Nigeria has signed a Memorandum of Understanding (MoU) with Chinese state-owned conglomerate SINOMACH to jointly establish a large-scale sugarcane cultivation and processing project in Nigeria.
This agreement, expected to attract investments worth up to US$1 billion, is an early outcome of the Nigeria-China Strategic Partnership led by President Bola Tinubu.
The collaboration is aimed at bolstering local sugar production, reducing import dependency, and enhancing food security.
According to NSDC Executive Secretary Kamar Bakrin, SINOMACH will be responsible for constructing a sugar processing facility and developing a sugarcane plantation.
The plant will initially have an annual processing capacity of 100,000 metric tonnes, with a long-term goal to increase this to one million metric tonnes.
Bakrin described the development as a significant step towards achieving Nigeria’s self-sufficiency in sugar production. He noted that 2025 is a crucial year for advancing food security and economic independence, and such bold investments are critical to meeting national targets.
The project is also expected to create thousands of direct and indirect jobs, spur rural infrastructure development, and conserve foreign exchange by cutting sugar imports.
Bakrin emphasized that the NSDC will provide comprehensive support to facilitate a smooth launch, including securing approvals and land acquisition.
SINOMACH Vice President Li Yu praised Nigeria’s implementation of the Nigeria Sugar Master Plan (NSMP), referring to it as a “sweet revolution” in support of food sovereignty and economic dignity.
The NSMP has four primary objectives: achieving self-sufficiency in sugar production, reducing sugar imports, creating employment, and generating electricity and ethanol for industrial use.
Market sugar demand
In November 2024, the NSDC urged local and international investors to take advantage of the untapped potential in Nigeria’s sugar industry.
The country consumes between 1.4 and 1.6 million metric tonnes of sugar annually, with about 96% of this volume imported, mainly from Brazil.
With the Nigerian sugar market valued at an estimated US$2 billion, the NSDC aims to reduce this dependency by tapping into the broader US$7 billion African sugar market and developing high-value byproducts such as ethanol, bioplastics, and packaging materials.
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