FG Pushes Dangote Sugar to Ramp Up Output as Nigeria Targets Self-Sufficiency
Nigeria’s drive to reduce its dependence on sugar imports is gaining renewed urgency, with the federal government calling on Dangote Sugar Refinery (DSR) to significantly expand its production capacity over the next five years. The directive reflects growing concern over the wide gap between domestic sugar output and national demand.
During an inspection visit to the company’s facility in Numan, Adamawa State, the minister of state for industry, John Enoh, urged the company to scale up its annual production to 600,000 metric tonnes by 2030. The visit, conducted alongside Kamar Bakrin of the National Sugar Development Council (NSDC), forms part of a broader nationwide review of sugar projects tied to the government’s long-term strategy.
Bridging a Persistent Supply Gap
Nigeria’s annual sugar consumption is estimated at about 1.8 million metric tonnes—far exceeding current local production. This shortfall has kept the country heavily reliant on imports, placing pressure on foreign exchange and exposing the economy to global price fluctuations.
Against this backdrop, DSR—one of the dominant players in the industry—is expected to take a leading role in narrowing the deficit. According to Enoh, the company’s performance will be central to determining the pace at which Nigeria can achieve self-sufficiency.
Renewed Focus on the Sugar Master Plan
The government’s push is anchored in the Nigeria Sugar Master Plan, a framework introduced over a decade ago to boost local production through backward integration. While progress has been made, officials now acknowledge that implementation has been slower than anticipated.
Recent deliberations at the Federal Executive Council (FEC), under the leadership of Bola Tinubu, have repeatedly highlighted the need to accelerate execution. The administration is seeking to unlock bottlenecks that have hindered large-scale investment in the sector.
Financing Challenges and “Patient Capital”
One of the most pressing constraints identified during the visit is access to affordable long-term financing—often referred to as “patient capital.” Large-scale sugar production requires significant upfront investment in plantation development, processing infrastructure, and logistics, with returns materializing over extended periods.
The government has signaled a willingness to explore mechanisms to support operators in raising such capital, recognizing that financial limitations remain a key barrier to expansion.
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| Olakunle Alake (L), vice president of the Dangote Group, John Owan Enoh (M), minister of state for industry, Kamar Bakrin (R), executive secretary/CEO of National Sugar Development Council (NSDC), touring the Dangote Sugar Refinery Complex in Numan, Adamawa state |
Despite these challenges, officials noted encouraging developments at the Numan facility. The delegation inspected ongoing expansion projects, including a new 6,000 tonnes-per-day processing plant, alongside sugarcane plantations and key industrial components such as mills, boilers, and evaporators.
These investments are seen as evidence of DSR’s commitment to the backward integration programme, which aims to replace imports with locally produced sugar.
Industry Commitment and the Road Ahead
Representing the company, Olakunle Alake reaffirmed DSR’s commitment to meeting the 600,000-metric-tonne target within the stipulated timeline. He emphasized continued investment in both agricultural and industrial capacity as critical to achieving that goal.
As Nigeria intensifies efforts to transform its sugar industry, the success of key players like DSR will be pivotal. Meeting the 2030 target would mark a significant step toward reducing import dependence, strengthening food security, and advancing industrial development in Africa’s largest economy.