Nigeria has secured a $1 billion investment from Chinese industrial giant SINOMACH as part of a strategic partnership aimed at boosting the country’s self-sufficiency in sugar production.
The investment, formalized through a Memorandum of Understanding (MoU) with the National Sugar Development Council (NSDC), will support the development of large-scale sugarcane cultivation and processing infrastructure across Nigeria.
Speaking to the News Agency of Nigeria (NAN) on Sunday in Abuja, NSDC Executive Secretary Mr. Kamar Bakrin revealed that the deal is a significant outcome of the Nigeria-China Strategic Partnership being championed by President Bola Tinubu.
According to the agreement, SINOMACH will construct a modern sugar processing facility and establish an expansive sugarcane plantation. The project will start with an annual processing capacity of 100,000 metric tonnes, with a long-term goal of scaling to one million metric tonnes.
Strategic Push for Food Security and Industrial Growth
Bakrin described the deal as a milestone in Nigeria’s journey toward food security and economic independence.
“2025 is a pivotal year for Nigeria, and we must make bold moves toward food security and economic self-sufficiency,” he said.
He added that the partnership is expected to generate thousands of jobs, spur rural infrastructure development, and reduce Nigeria’s reliance on sugar imports—thereby conserving foreign exchange and advancing the country’s industrialization agenda.
“This partnership with SINOMACH is unique. It combines engineering, procurement, and construction (EPC) with development financing—an essential model for agro-industrial transformation,” he noted.
The NSDC has pledged to provide full support to ensure a smooth takeoff, including facilitating land acquisition, project approvals, and regulatory clearances.
SINOMACH Commends Nigeria’s Sugar Master Plan
Vice President of SINOMACH, Mr. Li Yu, applauded Nigeria’s execution of the Nigeria Sugar Master Plan (NSMP), describing it as a “sweet revolution” that aligns with global trends in food sovereignty and economic dignity.
“We believe this partnership will not only boost Nigeria’s sugar self-sufficiency but also promote rural development, create employment, and enhance agricultural modernization,” Li said.
He also revealed that SINOMACH is exploring RMB-based financing models to fund the project, which could help reduce financing costs and accelerate approvals from Chinese institutions.
Li expressed optimism that the host state for the project could eventually emerge as the “Sugar Bowl of West Africa.”
What You Should Know
- The National Sugar Development Council (NSDC) was established by Decree 88 of 1993, now known as Act Cap. No. 78 LFN of 2004, and amended in 2015.
- The NSDC is mandated to coordinate and drive Nigeria’s sugar industry development, with a goal of achieving 70% self-sufficiency in sugar production.
- The council also aims to position Nigeria as a net sugar-exporting country, thereby boosting foreign exchange earnings.
- Prior to its establishment, sugar sector planning and coordination were inadequate, limiting its potential contribution to national growth.
