SINOMACH, a Chinese conglomerate, is investing $1 billion in Nigeria’s sugar Industry.
The memorandum of understanding for the development of a sugarcane cultivation and processing plant capable of producing one million metric tonnes of sugar has been signed by the investor and the National Sugar Development Council (NSDC).
In the agreement, SINOMACH is set to start by constructing a sugar production plant and sugarcane plantation with an annual production capacity of 100,000 metric tonnes, while the NSDC will facilitate and assist in obtaining the necessary authorisations, approvals and permissions to undertake the project.
While SINOMACH is expected to contribute its vast expertise, resources, and experience in the execution of the project on an engineering, procurement, and construction (EPC) basis, the biggest advantage of the arrangement is that the Chinese conglomerate would also be financing it.
During the MoU signing ceremony in Abuja, the Executive Secretary/CEO of NSDC, Kamar Bakrin, said that 2025 represents a pivotal year for accelerated development in Nigeria’s sugar Industry.
Bakrin said: “It is a critical period during which we expect to make significant strides in our national journey towards economic self-sufficiency and food security, especially given the fiscal pressure that Nigeria faces.
“A robust sugar industry will deliver several benefits to Nigeria. These include the creation of thousands of sustainable jobs across the value chain.
Sugar, by its very nature, leads to extensive rural infrastructure development. For Nigeria, it will also result in substantial foreign exchange savings, as it will substitute imports, which currently account for the bulk of the country’s sugar consumption.
We envision a sugar sector, when fully developed, that will serve as a blueprint for Nigeria’s broader industrialisation strategy. And, of course, China, being the world’s leader in industrialisation, can easily relate to this.
“We believe that the sugar industry can serve as a model in this regard, as it allows us to adopt a creative and transformative approach to achieving scale and speed – critical elements for Nigeria’s development. Specific elements that we believe, if successfully implemented in the sugar sector, can be replicated in other areas of Nigeria’s industrialisation include a strategic approach to sector development, the establishment of enabling policy frameworks, effective aggregation of critical production inputs, acquisition of technical skills and competencies and innovative financing solutions.”
He said that the signing marked the beginning of what could evolve into a long-term relationship capable of delivering as much as one million metric tonnes of locally produced sugar, thereby strengthening the country’s domestic production capacity and reducing import dependence.
“It is indeed a unique model, as it combines both EPC and development financing—an essential requirement for agro-industrial development in the country,” Bakrin said.
The Vice President of SINOMACH, Li Xiao Yu, acknowledged that as Africa’s largest economy, the country’s vigorous implementation of the NSMP to achieve self-sufficiency in sugar production is laudable.
“We deeply admire this vision – it is not only an industrial policy but also a sweet revolution tied to food sovereignty and economic dignity.
We firmly believe that, through joint efforts, the success of the plantation and sugar mill project will enhance Nigeria’s sugar self-sufficiency, spur economic development in surrounding areas, create substantial employment, modernise the agricultural value chain, and generate long-term and sustainable social benefits.“We view our partnership with NSDC not merely as a commercial endeavour, but as a concrete step toward implementing the shared vision of our two Heads of State to enhance agricultural cooperation and promote common development,” he said.