
NIGERIA -Industry experts in Nigeria have urged the government to implement stronger measures to enhance domestic sugar production and reduce the country’s reliance on imports.
This call follows a steady rise in sugarcane consumption, which has grown at an average annual rate of 1.7 percent since 2017.
Nigeria’s sugar market is projected to experience significant expansion in the coming years, driven by increasing domestic demand, rising investment, and favorable government policies.
Analysts estimate that the industry could surpass US$2.5 billion by 2030, with an annual growth rate of 5.37%.
Despite these promising projections, the sector faces numerous challenges that hinder growth. Key issues include the impact of climate change on sugarcane yields, poor infrastructure, and inadequate storage and transportation facilities.
Additionally, Nigerian sugarcane farmers struggle with low productivity due to outdated farming methods, lack of quality inputs, and limited mechanization. The country’s sugar processing capacity remains insufficient to meet the growing demand for refined sugar.
To address these concerns, industry stakeholders have called for increased collaboration between the government and the private sector. They recommend strategies to boost productivity, expand processing capabilities, and create a more supportive environment for local producers.
Experts also advocate for diversifying sugar production by investing in refined sugar, brown sugar, and sugar substitutes.
Femi Egbesola, President of the Association of Small Business Owners of Nigeria (ASBON), criticized the National Sugar Master Plan, arguing that it has failed to produce significant results.
“Nigeria’s sugar production still falls short of meeting local demand, forcing reliance on imports. To achieve self-sufficiency, the government must implement a new Sugar Master Plan that addresses the sector’s major challenges,” he stated.
Egbesola identified key barriers affecting the industry, including inadequate raw materials, poor irrigation, lack of mechanization, insecurity, and insufficient funding.
He proposed establishing additional cane mills in sugar-producing regions and launching training programs and intervention initiatives to support processors and stakeholders.
Professor Abel Ogunwale, Provost at the College of Agricultural Sciences and Renewable Natural Resources, Ladoke Akintola University, emphasized the need for expanded sugarcane cultivation.
He noted that current policies and incentives aim to boost domestic production, reduce sugar imports, generate employment, and support ethanol production and electricity generation.
Last month, Kamar Bakrin, Executive Secretary of the National Sugar Development Council (NSDC), stated that Nigeria requires a US$5 billion investment to achieve self-sufficiency in sugar production.
“Currently, Nigeria produces 48,000 metric tonnes of sugar annually, while consumption is around 1.8 million metric tonnes, leaving a supply gap of approximately 1.75 million metric tonnes,” he explained.
Meanwhile, a report from the United States Department of Agriculture (USDA) Foreign Agricultural Service (FAS) projects a 6% increase in refined sugar exports from West Africa and other Sub-Saharan African nations in the 2024/25 marketing year, driven by rising demand.
Conversely, raw sugar imports are expected to decline by 6% due to foreign exchange constraints and a projected decrease in consumption.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.