NSDC Partners NEXIM Bank To Scale- up Sugar Project Financing

The National Sugar Development Council (NSDC) and the Nigerian Export-Import Bank (NEXIM Bank) have struck a strategic partnership to pursue long-term, development-oriented financing for the large-scale transformation of the country’s sugar industry.

This was the outcome of a meeting held between the two organisations in Abuja.

The NSDC delegation led by the Executive Secretary/CEO, Mr. Kamar Bakrin, proposed a crucial partnership with the Bank that will use the Engineering, Procurement, Construction plus Financing (EPC+F) model to finance the Council’s viable sugar projects.

Under the proposed framework, the NSDC would originate and develop bankable, policy-aligned projects and support equity mobilisation, while NEXIM Bank would anchor capital mobilisation by facilitating access to international Export Credit Agencies (ECAs), coordinating syndication with other Development Finance Institutions (DFIs), supporting foreign input financing, and providing risk-mitigation instruments, including guarantees and commercial risk insurance.

During the engagement, Mr. Bakrin outlined the significant market opportunities within Nigeria and the wider African sugar sector, noting that the Nigerian sugar market is valued at approximately US$2 billion, while the broader African sugar market is estimated at about US$7 billion. He added that sugar by-products have a market that exceeds US$10 billion in Nigeria.

The NSDC boss outlined the institutional measures already undertaken to de-risk investment in the sugar sector and enhance execution certainty.

These include ongoing efforts to codify the Nigeria Sugar Master Plan (NSMP) into law through amendments to the NSDC Act to guarantee policy continuity and investor protection.

According to the NSDC boss, smuggling and other activities that encourage the influx of cheaper products are being tackled by rigorous enforcement and effective implementation of penalties.

He informed the gathering that large-scale sugar projects are structured to create significant employment across farming, processing, logistics and ancillary services.

According to him, Outgrower schemes are embedded to integrate smallholder farmers into commercial value chains, enhance rural incomes and promote inclusive growth.

In his response, the Managing Director of NEXIM Bank, Mr. Abba Bello, welcomed the initiative and acknowledged the strategic importance of the sugar industry to Nigeria’s economic diversification, export development and value-chain expansion objectives.

He expressed NEXIM Bank’s interest in exploring structured partnerships that would unlock long-term financing, strengthen local value chains and enhance Nigeria’s competitiveness within regional and international markets.

Mr. Bello commended the structured and execution-focused approach being adopted by the NSDC and reaffirmed NEXIM Bank’s commitment to supporting viable export-oriented and import-substitution projects that align with national development priorities.

Mathew Ayoola, Edited By Grace Namiji