Nigeria’s sugar industry to witness transformation as stakeholders reaffirm commitment to master plan
By Msugh Ityokura
Nigeria’s sugar industry will soon begin to witness some transformation given the regulatory steps being taken by authorities to ensure it is strategically positioned to effectively relate with operators in the sector
This is just as key stakeholders in the sector have reaffirmed their commitment to the successful implementation of the National Sugar Masterplan (NSMP), which aims to transform Nigeria into a net exporter of sugar and related products, while contributing meaningfully to national economic growth.
The stakeholders, including the National Sugar Development Council (NSDC), Nigeria Customs Service (NCS), National Agency for Food and Drug Administration and Control (NAFDAC), BUA Group, Flour Mills of Nigeria Plc, and Abuja-based consulting firm NINA-JOJER made their position known during a one-day public hearing on a bill to amend the National Sugar Development Council Act, held Thursday, in Abuja
The proposed legislation is titled “A Bill for an Act to Amend the National Sugar Development Council Act, CAP N78 Laws of the Federation of Nigeria, 2024, to Provide for the Functions and Powers of the Council, and the Payment of All Monies Received by the Council into the Federation Account in Accordance with Section 162 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), and for Related Matters” (HB.2022 and HB.2030).
The Executive Secretary of the NSDC, Mr. Kamar Bakrin, emphasized the transformative goals of the Sugar Masterplan, chief among which is the creation of 100,000 high-quality jobs, development of rural infrastructure, and savings of over $1 billion in foreign exchange annually.
“To realize this vision, we require $4.5 billion in investments, which the Council is actively working to attract. Investor confidence is critical, and that confidence hinges on transparent, rule-based policies,” he said.
Bakrin raised concerns over the recent directive mandating that 50% of the sugar levy be remitted to the Consolidated Revenue Fund (CRF), warning that such measures could undermine the sector’s transformation goals.
“The sugar levy was specifically introduced to fund the development of the sector, unlike import duties. Redirecting those funds could derail the country’s industrial ambitions,” he warned, adding that the NSDC has established a technical committee to thoroughly review the proposed amendments and provide feedback.
Representing the Director General of NAFDAC, Prof. Mojisola Adeyeye, Mrs Iba Edward expressed the agency’s support for the bill’s intent to enhance the Council’s regulatory capacity. However, he cautioned that some of the proposed provisions overlap with NAFDAC’s core regulatory functions as outlined in Section 5 of the NAFDAC Act.
“We urge the National Assembly to clearly delineate the roles of NSDC to avoid conflict and duplication. NAFDAC remains the regulatory authority for all food imports, including sugar, to ensure consumer safety and quality standards,” he said.
An Assistant Comptroller General of Customs, K.C. Egwuh, affirmed the Nigeria Customs Service’s commitment to its revenue collection mandate under Nigeria’s fiscal laws. He reiterated the agency’s support for efforts to enhance transparency and efficiency in the sugar industry.
Representing BUA Group, former Minister Dr. Aliyu Idi Hong expressed the company’s firm commitment to the NSMP, noting BUA’s substantial investments in the sector.
“We have developed a nearly 50,000-hectare sugar plantation, with 20,000 hectares already under cultivation, and we’re acquiring another 50,000 hectares. While we’re not where we want to be yet, we are making progress,” he said.
Hong, however, urged policymakers to consider the economic impact of regulatory changes on both producers and consumers. “Fiscal policies must be holistic and sensitive to the realities of Nigerians. As a socially responsible company, we support the backward integration policy and commend the ongoing reforms.”
On behalf of Flour Mills of Nigeria, Mr. Onome Okurah, Head of Government and Community Relations, acknowledged the challenges in the sector but stressed the company’s continued dedication.
“We operate on over 6,000 hectares and currently run sugar production for three to four months each year. We believe that with sustained collaboration, we’ll see meaningful progress in the next decade,” he said.
The consulting firm NINA-JOJER also made submissions at the hearing, raising concerns about the bill’s provisions on the utilization of the sugar levy, quota allocation, expanded regulatory roles, and enforcement mechanisms. The firm called for clarification of grey areas to ensure transparency and effectiveness.
The committee chairman, Enitan Dolapo Badru had earlier stated that the hearing was part of efforts to develop inclusive legislation that will strengthen the NSDC’s capacity to drive the NSMP.
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“We urge all stakeholders to contribute constructively. Our goal is to build a sustainable and competitive sugar industry that creates jobs, improves livelihoods, and contributes significantly to national development,” he said.
In his remarks, Minister of Industry, Trade and Investment, Dr. John Owan Eno, emphasized sugar’s potential in achieving President Bola Tinubu’s $1 trillion economy vision.
“Sugar plays a critical role in rural development, job creation, and national value generation. The NSMP is a vital component of our industrialization drive. However, its success depends on the collective attitude and accountability of both public and private sector actors,” he said.
The Minister noted that while the sugar industry has benefited from over $2 billion in incentives under the first and second phases of the Masterplan, its contribution to the economy remains underwhelming—estimated at just $30 billion.
“This amendment is intended to strengthen the law, correct past lapses, and ensure we achieve real import substitution and sustainable local capacity,” he said.
