Nigeria Secures $1 Billion Investment with Chinese Firm to Boost Sugar Production

Nigeria has secured a $1 billion investment through a strategic partnership with Chinese conglomerate SINOMACH, aimed at enhancing the country’s self-sufficiency in sugar production. The collaboration, formalized via a Memorandum of Understanding (MoU) with the National Sugar Development Council (NSDC), will focus on large-scale sugarcane cultivation and processing.

Key Details of the Partnership

Mr. Kamar Bakrin, Executive Secretary of NSDC, disclosed the agreement in an interview with the News Agency of Nigeria (NAN). He emphasized that this initiative is a direct outcome of the Nigeria-China Strategic Partnership championed by President Bola Tinubu.

Under the MoU, SINOMACH will:

• Construct a sugar processing plant
• Develop a sugarcane plantation with an initial capacity of 100,000 metric tonnes annually
• Aim for a long-term target of one million metric tonnes

Driving Food Security and Economic Growth

Bakrin described the agreement as a strategic milestone for Nigeria’s agricultural sector. “2025 is a pivotal year for Nigeria, and we must make bold moves towards food security and economic self-sufficiency,” he stated.

The project is expected to:

• Create thousands of jobs
• Stimulate rural infrastructure development
• Conserve foreign exchange
• Serve as a model for industrialization

Financing and Future Outlook

Mr. Li Yu, Vice President of SINOMACH, praised Nigeria’s Sugar Master Plan, calling it a “sweet revolution.” The company is exploring RMB-based financing to reduce costs and accelerate approvals.

Li expressed optimism that the host state could become the “Sugar Bowl of West Africa,” significantly boosting regional agricultural output.

About the National Sugar Development Council

Established in 1993, the NSDC aims to:

• Achieve 70% sugar self-sufficiency
• Position Nigeria as a sugar-exporting nation
• Improve sector coordination and planning

This landmark investment represents a major step forward in Nigeria’s agricultural and industrial development strategy.

Source: Nairametrics