Efforts to strengthen Nigeria’s domestic sugar production have received a boost with the creation of a ₦10 billion financing facility aimed at supporting the development of new sugar projects across the country. The initiative is expected to help transform early-stage ideas in the sector into viable investments capable of attracting long-term funding and driving industrial growth.
The Sugar Project Acceleration Fund (SPAF) was jointly established by the National Sugar Development Council (NSDC) and the Bank of Industry (BOI). The fund is designed to provide both financing and project development support for greenfield sugar projects, with the broader goal of building a more sustainable and competitive sugar industry in Nigeria.
Industry stakeholders were recently briefed on the structure and opportunities presented by the fund during an interactive engagement session organised by the council. At the session, officials from the NSDC and BOI explained the operational framework of the facility, eligibility requirements and the process through which prospective beneficiaries can access the support.
Speaking during the engagement, the Executive Secretary and Chief Executive Officer of the National Sugar Development Council, Kamar Bakrin, stressed that the availability of funding alone is not enough to guarantee success in large-scale sugar production projects.
According to him, many promoters often assume that capital is the biggest barrier to agricultural industrialisation, whereas the real challenge frequently lies in the quality and preparedness of the projects seeking funding.
He noted that development finance institutions and impact investors across Africa are increasingly willing to finance agro-industrial ventures. However, a significant number of proposals fail to meet the rigorous standards required for investment.
“The constraint, far more often than people appreciate, is not the availability of money,” Bakrin said. “It is the availability of projects that are properly structured, well documented and sufficiently de-risked to the standard required to receive financing.”
Bakrin explained that a bankable sugar project must be supported by a comprehensive feasibility study that addresses critical areas such as agronomy, water availability, infrastructure requirements and environmental risks. In addition, project developers must present a robust financial model, demonstrate clear land tenure arrangements and outline a credible strategy for implementation.
He also emphasised the importance of incorporating an out-grower development programme, which would allow surrounding farming communities to participate in the value chain and benefit from the growth of the industry.
The SPAF initiative, he said, was created specifically to bridge the gap between promising project concepts and fully developed, investor-ready ventures. Rather than functioning as a grant scheme, the facility is structured to help promoters refine their ideas into bankable projects that can secure larger pools of investment capital.
Providing further details on the operation of the fund, Hadiza Shuaib, a representative of the Bank of Industry, explained that the bank will serve as the fund manager.
In that role, BOI will be responsible for conducting credit appraisals, managing risks, disbursing loans and monitoring the performance of supported projects. She added that only companies and investors involved in sugar production or closely related activities will be eligible to access the facility.
The establishment of the SPAF is seen as part of broader efforts to deepen Nigeria’s agro-industrial capacity, reduce dependence on imported sugar and encourage greater private sector participation in the development of the country’s sugar value chain.