Nigeria, Chinese investors partner to inject $1bn into sugar industry
The Vice President of SINOMACH, Li Xiao Yu (L), with the Executive Secretary/CEO of the National Sugar Development Council (NSDC), Mr. Kamar Bakrin (R), during the signing ceremony.
Nigeria, Chinese investors partner to inject $1bn into sugar industry
The National Sugar Development Council has signed a Memorandum of Understanding with Chinese conglomerate, SINOMACH, for a sugarcane cultivation and processing project that aims to produce up to one million metric tonnes of sugar annually in Nigeria.
According to a statement on Sunday, the agreement, a product of the Nigeria-China Strategic Partnership initiated by President Bola Tinubu, has the potential to attract as much as $1 billion in investments into the Nigerian sugar sector.
As part of the deal, SINOMACH will construct a sugar production plant and develop a sugarcane plantation with an initial capacity of 100,000 metric tonnes annually.
The NSDC will assist in securing the necessary authorisations and approvals for the project, which is expected to more than double the country’s current local sugar output.
Speaking at the MoU signing ceremony in Abuja, NSDC Executive Secretary/CEO, Mr. Kamar Bakrin, said the initiative marks a critical step toward Nigeria’s economic self-sufficiency and food security.
“2025 is a pivotal year during which we expect to make significant strides in our national journey.
“A robust sugar industry will deliver several benefits to Nigeria, including job creation, rural infrastructure development, and foreign exchange savings by reducing sugar imports,” Bakrin said.
He described the partnership as a model for Nigeria’s broader industrialisation drive.
“The sugar industry can serve as a model, giving us the opportunity to adopt a creative and transformative approach to achieving scale and speed,” Bakrin said.
The project will follow an Engineering, Procurement and Construction model, with SINOMACH also providing the financing.
“The signing of this MoU marks the beginning of what we anticipate will evolve into a long-term relationship capable of ultimately delivering as much as one million metric tonnes of locally produced sugar,” he added.
Vice President of SINOMACH, Li Xiao Yu, praised Nigeria’s commitment to its Sugar Master Plan and described the partnership as more than a commercial transaction.
“We deeply admire this vision—it is not only an industrial policy but also a sweet revolution tied to food sovereignty and economic dignity,” he said.
Li noted that the project is expected to enhance sugar self-sufficiency, generate employment, and modernise Nigeria’s agricultural value chain.
“We are also actively exploring the implementation of RMB-based financing models to support our collaboration,” he added, noting the potential for reduced costs and faster approvals,” he said.
He expressed optimism that the chosen host state for the project could become the “Sugar Bowl of West Africa.”
