Nigeria’s sugar industry faces critical challenges as experts warn against continued overreliance on imports despite government backing and private sector investments in local production.
The Foreign Agricultural Service projects a significant 12 percent surge in raw sugar imports for 2025, driven by anticipated improvements in foreign exchange availability, naira strengthening, and rising domestic consumption. Recent shipping data from March 2025 shows approximately 98,000 metric tonnes of raw sugar entering the country, highlighting the persistent gap between domestic production and national demand.
Dr. Victor Iyama, Chairman of the Board of Trustees for the Federation of Agricultural Commodities of Nigeria, emphasized that robust sugarcane industry development could transform Nigeria’s economy beyond mere sugar production. He highlighted substantial job creation potential across the entire value chain, from farmers to processing facilities and distribution networks.
“Expanding sugarcane cultivation would lead to employment surges across rural communities, providing vital income opportunities and improving livelihoods,” Iyama stated. He stressed that a thriving sugarcane sector would reduce Nigeria’s import dependence, saving considerable foreign exchange currently spent on meeting domestic demand.
The versatility of sugarcane as raw material extends beyond sugar production into biofuel manufacturing, particularly ethanol, offering sustainable and renewable energy alternatives. This diversification potential positions the crop as a strategic economic asset with multiple revenue streams.
Prof. Daniel Gwary of the University of Maiduguri emphasized Nigeria’s need for an additional 100,000 hectares of sugarcane cultivation to significantly boost production and create employment opportunities. He noted that current small-scale farmer contributions remain insufficient to bridge existing supply gaps.
“Our current sugar production is not meeting national demand, and this deficit has economic implications, including reliance on imports,” Gwary explained. “To reverse this situation, we need massive upscaling in sugarcane farming operations.”
The professor highlighted that while small-scale farmers play vital roles in agricultural sectors, their output alone cannot meet ambitious targets required for sugar self-sufficiency. The sugar industry’s need for economies of scale and significant capital investment in processing infrastructure necessitates large-scale investor involvement.
Gwary called for local and international investors with capacity to acquire and develop substantial land areas for sugarcane cultivation. Such investments would provide stable raw material supplies for sugar mills while stimulating rural economies through direct employment, outgrower schemes, and ancillary services.
The industry’s transformation requires coordinated efforts between government policy support, private sector investment, and farmer capacity building. Strategic interventions in irrigation infrastructure, modern farming techniques, and processing technology could position Nigeria as a regional sugar production hub.
Current import dependency undermines Nigeria’s agricultural potential and foreign exchange reserves. Developing domestic production capacity would create thousands of jobs, reduce import bills, and establish foundation for value-added processing industries.
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