The National Sugar Development Council (NSDC) and the Bank of Industry (BOI) have launched a ₦10 billion Sugar Project Acceleration Fund (SPAF) aimed at supporting the development of greenfield sugar projects across Nigeria and strengthening the country’s domestic sugar industry.
The fund is designed to provide financing and project-development support to viable new sugar investments, helping promoters structure their projects to a level that can attract large-scale funding from development finance institutions and private investors. According to the Executive Secretary of the NSDC, Kamar Bakrin, the biggest challenge in the sector is not necessarily the availability of capital but the lack of properly structured and investment-ready projects capable of meeting lenders’ requirements.
Bakrin explained that the SPAF facility will function as a structured pre-investment programme, helping project promoters develop bankable feasibility studies, strong financial models, and clear implementation plans while addressing environmental and social risk requirements demanded by investors. The initiative is therefore designed to create a pipeline of credible sugar projects that can attract larger financing and accelerate industry development.
Under the arrangement, the Bank of Industry will serve as the fund manager, handling credit appraisal, loan disbursement, risk management, and monitoring of supported projects, while the NSDC will provide sector leadership and technical guidance to ensure the projects align with Nigeria’s national sugar development goals.
BOI representatives also noted that the programme goes beyond funding, emphasising skills development and capacity building to ensure long-term sustainability and effective project implementation. Only companies involved in sugar production or related value-chain activities will be eligible to access financing under the scheme. Several potential project promoters attended the launch event, including Illaj Sugar, Brent Foods, Crystal Sugar, Legacy Sugar, Saro Sugar, Awaa, Ganic, and Confluence Sugar, reflecting growing investor interest in Nigeria’s sugar industry. The initiative is expected to help reduce Nigeria’s dependence on imported sugar while building a more competitive domestic production base.
