The agreement, which stems from the Nigeria-China Strategic Partnership championed by President Bola Ahmed Tinubu, is expected to serve as a cornerstone for the country’s broader industrialisation agenda. Under the terms of the MoU, SINOMACH will build and finance a sugar production facility and establish a sugarcane plantation with an initial capacity of 100,000 metric tonnes of sugar annually. This would more than double Nigeria’s current output and lay the groundwork for an eventual expansion to one million metric tonnes per year.
Speaking at the signing ceremony in Abuja, NSDC Executive Secretary and CEO, Mr. Kamar Bakrin, highlighted the significance of the partnership, noting that 2025 marks a crucial year for accelerating Nigeria’s economic transformation.
“This is a pivotal period in our national journey—one where we must make bold, strategic moves to achieve food security and economic self-sufficiency. A strong sugar industry will play a key role in this transformation,” Bakrin said.
He underscored the ripple effect a revitalised sugar industry could have on Nigeria’s economy. In addition to saving substantial foreign exchange by curbing imports, the project is expected to create thousands of jobs, catalyse rural development, and strengthen domestic supply chains.
“We see this project as more than just a commercial enterprise—it’s a model for how we can scale up and industrialise rapidly, using innovative approaches to policy, finance, skills development, and input aggregation,” he added.
The project’s Engineering, Procurement, and Construction (EPC) model is unique in that it also incorporates development financing from SINOMACH—a critical component in de-risking and scaling up agro-industrial ventures in Nigeria.
Representing SINOMACH at the event, Vice President Li Xiao Yu praised Nigeria’s commitment to the Nigeria Sugar Master Plan (NSMP) and expressed strong support for the shared goals of food sovereignty and economic empowerment.
“We are honoured to partner with NSDC in this sweet revolution. Nigeria’s ambition to become self-sufficient in sugar production is not only commendable but timely,” said Li.
He noted that the partnership aligns with the bilateral vision of both countries’ leadership, particularly in strengthening agricultural cooperation. “Our efforts will help enhance sugar self-sufficiency, modernise the agricultural value chain, generate employment, and deliver sustainable development to surrounding communities,” he stated.
Li also disclosed that SINOMACH is exploring the use of RMB-based financing models to support the initiative. Such a move, he explained, would lower funding costs, expedite project approvals from the Chinese side, and contribute to diversifying Nigeria’s financial ecosystem.
“As we work toward identifying the project’s host location, we envision that state eventually becoming the Sugar Bowl of West Africa,” he said.
This partnership is seen as a major milestone in Nigeria’s journey toward agro-industrial self-reliance. If fully implemented, the sugar production project could set a benchmark for other sectors looking to blend infrastructure development with foreign investment, local expertise, and strategic vision.