The National Sugar Development Council and the Bank of Industry have introduced a N10 billion funding facility designed to stimulate investment in Nigeria’s sugar industry and accelerate the development of new sugar production projects.
The initiative, known as the Sugar Project Acceleration Fund, is targeted at supporting greenfield sugar ventures across the country. The programme is structured to provide both financial assistance and technical support to viable project promoters with the aim of building a more competitive and sustainable sugar sector.
Officials of both institutions unveiled the fund during an engagement session with potential beneficiaries. At the meeting, prospective investors and project promoters were briefed on the requirements for accessing the facility and the strategic objectives behind the intervention.
The Executive Secretary and Chief Executive Officer of the National Sugar Development Council, Kamar Bakrin, explained that the central challenge facing many agricultural investments is not simply the availability of capital but the absence of projects that meet investor standards.
According to him, “What does a bankable project look like? It begins with a technically credible feasibility study, one that addresses agronomy, water balance, infrastructure requirements, and social and environmental risks with the same rigour that a financier’s due diligence team will apply.”
Bakrin stressed that credible agricultural projects require strong technical and financial preparation before they can attract large scale funding from development finance institutions and private investors.
He added that viable projects must also demonstrate clear land ownership arrangements, reliable implementation plans, and management teams capable of delivering results. These elements, he noted, are essential for building confidence among financiers and ensuring long term sustainability.
The new fund is therefore designed as a structured pre investment facility that helps promoters refine their proposals and transform early stage ideas into projects capable of attracting large scale investment.
Bakrin further clarified that “SPAF is not a grant programme, and it is not a gesture. It is a rigorous, output oriented facility with clear eligibility criteria, defined deliverables, and an explicit objective.”
The goal, he said, is to create a pipeline of credible Nigerian sugar projects that can absorb significant financing and expand domestic production capacity.
Representing the Bank of Industry at the session, Hadiza Shuaib stated that the bank will serve as the fund manager. In that role, BOI will oversee project structuring, credit appraisal, risk management and the responsible deployment of funds.
She noted that proper project preparation and effective risk management are essential to ensure that supported investments achieve measurable results.
Shuaib also emphasised the importance of skills development within the sugar value chain, pointing out that financing alone cannot guarantee sustainable outcomes. Only businesses operating within the sugar industry or related activities will be eligible to access the facility.
Industry observers believe the programme could help strengthen Nigeria’s sugar value chain by encouraging the development of new large scale sugar estates, improving domestic production and reducing dependence on imports.
Through the collaboration between the National Sugar Development Council and the Bank of Industry, policymakers hope to move Nigeria closer to building a self sustaining sugar industry capable of supporting food security, job creation and broader agro industrial growth.
