Nigerian Sugar Industry Gets N10 Billion Boost as NSDC and BOI Launch Financing Initiative for New Ventures

The National Sugar Development Council and the Bank of Industry have collaborated to establish a N10 billion Sugar Project Acceleration Fund, aimed at supporting the development of greenfield sugar projects across the country, with a focus on providing financing and project development support to viable initiatives.

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This fund is designed to accelerate the growth of a sustainable and competitive sugar industry in Nigeria, and to achieve this goal, the council organized an interactive session to brief potential beneficiaries on the structure, requirements, and opportunities provided by the fund.

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At the event, Mr. Kamar Bakrin, the Executive Secretary/Chief Executive Officer of the National Sugar Development Council, emphasized that access to capital alone does not guarantee the success of sugar production projects, highlighting the need for a more comprehensive approach.

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According to Bakrin, many proposals for agro-industrial projects in Africa fail to meet the required standards to secure financing, and he noted that the main constraint is not the availability of money, but rather the availability of projects that are structured, documented, and de-risked to the standard required to receive financing.

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Bakrin explained that a bankable sugar project must be backed by a credible feasibility study covering key areas such as agronomy, water resources, infrastructure, and environmental risks, as well as a strong financial model and clear land tenure arrangement.

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Additionally, a credible implementation strategy and outgrower development plan are essential components of a bankable sugar project, and Bakrin emphasized that the Sugar Project Acceleration Fund was created to bridge the gap between early-stage project concepts and bankable investments.

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The facility is not a grant, but rather a structured initiative to develop investor-ready sugar projects, and the Bank of Industry will serve as fund manager, handling credit appraisal, risk management, loan disbursement, and monitoring.

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Ms. Hadiza Shuaib, representing the Bank of Industry, stated that only businesses engaged in sugar or related activities will qualify for the facility, outlining the bank's role in managing the fund and ensuring its effective implementation.