Nigeria could save approximately $1bn in foreign exchange annually and generate 110,000 direct jobs if it achieves self-sufficiency in sugar production, the National Sugar Development Council (NSDC) has said.
The council said expanding domestic sugar production would reduce the country’s dependence on imports, strengthen local manufacturing and create opportunities across agriculture, processing, transportation and distribution.
Executive Secretary and Chief Executive of the NSDC, Kamar Bakrin, disclosed the potential economic benefits during the recently concluded 32nd Nigerian Economic Summit in Abuja.
Bakrin said the development of the sugar industry could help address some of Nigeria’s most pressing economic challenges, including unemployment, pressure on foreign exchange, rural poverty, food security and the rising cost of living.
He noted that the industry had the potential to become an important contributor to economic diversification if government policies translated into sustained investment and increased domestic production.
Nigeria’s sugar industry remains heavily dependent on imported raw and refined sugar despite years of efforts to develop local production capacity.
Data from the United States Department of Agriculture’s Foreign Agricultural Service indicate that Nigeria consumes approximately 1.7 million metric tonnes of sugar annually, while domestic production was estimated at just 105,000 tonnes in the 2025/2026 marketing year.
The gap between local output and national consumption highlights the scale of investment required to achieve self-sufficiency.
Production gap presents investment opportunity
The difference between domestic production and consumption means Nigeria continues to rely substantially on foreign suppliers to meet demand from households and industries.
Sugar is a critical input for several manufacturing activities, particularly food and beverage production. Dependence on imported supplies exposes manufacturers to exchange-rate volatility, international commodity prices and foreign exchange availability.
Expanding local production could therefore reduce import costs while improving the stability of raw material supplies for domestic industries.
However, achieving the target would require investments across the sugar value chain, including sugarcane cultivation, irrigation, processing facilities, transportation infrastructure and supporting agricultural services.
The industry would also need improved access to financing, modern farming techniques, reliable energy and long-term arrangements between sugar producers and farmers.
Bakrin’s projection of 110,000 direct jobs also points to the potential impact of large-scale sugar production on rural communities, where agricultural activities and processing facilities could create new sources of income.
The council’s ambition reflects the government’s broader industrialisation agenda, which seeks to increase local production, conserve foreign exchange and reduce Nigeria’s exposure to imported goods.
Nevertheless, the projected savings and employment opportunities will depend on how quickly investment translates into higher production and a commercially sustainable domestic sugar industry.
