Nigeria has secured a $1 billion investment through a landmark partnership with Chinese conglomerate SINOMACH to boost the nation’s sugar production and move closer to self-sufficiency.
The agreement, signed via a Memorandum of Understanding (MoU) with the National Sugar Development Council (NSDC), marks a major stride in Nigeria’s ongoing drive to strengthen its food security and reduce reliance on imports.
Speaking in Abuja during an interview with the News Agency of Nigeria (NAN), Executive Secretary of the NSDC, Mr. Kamar Bakrin, described the deal as one of the first significant outcomes of the Nigeria-China Strategic Partnership spearheaded by President Bola Tinubu.
“This agreement is expected to attract investments worth up to $1 billion,” Bakrin stated.
“2025 is a pivotal year for Nigeria, and we must make bold moves towards food security and economic self-sufficiency.”
Under the terms of the MoU, SINOMACH will develop an expansive sugarcane plantation and construct a state-of-the-art sugar processing plant.
The facility will begin with an annual processing capacity of 100,000 metric tonnes, with a long-term vision to scale production to one million metric tonnes per year.
Bakrin emphasized that the initiative is set to generate thousands of jobs, spark rural infrastructure development, and help conserve Nigeria’s foreign exchange by significantly reducing the country’s dependence on imported sugar.
“This partnership with SINOMACH is unique. It combines engineering, procurement, and construction (EPC) with development financing, an essential model for agro-industrial transformation,” he said.
Bakrin also confirmed that NSDC would play an active role in supporting the project’s launch by facilitating land acquisition, regulatory approvals, and other necessary authorizations to ensure a smooth takeoff.
Also speaking on the partnership, SINOMACH Vice President Mr. Li Yu commended Nigeria’s commitment to the Nigeria Sugar Master Plan (NSMP), describing the progress so far as a “sweet revolution” aligned with broader goals of 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 added that SINOMACH is considering RMB-based financing models for the project, a strategy designed to lower funding costs and streamline approval processes in China.
Li expressed strong optimism about the project’s impact, suggesting that the selected host state could ultimately become the “Sugar Bowl of West Africa.”
Established under Decree 88 of 1993, now Act Cap. No. 78 LFN of 2004 and amended in 2015, the National Sugar Development Council was created to provide strategic direction and coordination to Nigeria’s sugar industry.
Its mandate includes driving sugar self-sufficiency, with a minimum target of 70%, and positioning Nigeria as a potential exporter of sugar to earn valuable foreign exchange.
Prior to the establishment of the council, sugar development efforts in Nigeria were fragmented and poorly managed, stalling the sector’s ability to contribute meaningfully to the country’s industrial and economic growth.
