Sugar Production: NSDC, BOI establish N10bn fund for greenfield projects
NSDC and Bank of Industry Launch N10 Billion Sugar Project Fund
The National Sugar Development Council (NSDC) and the Bank of Industry (BOI) have launched a N10 billion Sugar Project Acceleration Fund (SPAF) aimed at supporting the establishment of greenfield sugar projects throughout Nigeria.
This fund is intended to provide financing and project development assistance to feasible greenfield initiatives, promoting the growth of a sustainable and competitive sugar industry in the country.
To inform stakeholders about the initiative, the NSDC hosted an interactive session where officials from both agencies outlined the fund’s structure, requirements, and available opportunities for potential beneficiaries.
During the event, NSDC Executive Secretary and Chief Executive Officer Kamar Bakrin emphasized that access to capital alone does not ensure the success of sugar production projects. “Capital availability, on its own, will not result in sugar production,” he stated.
Bakrin explained that while development finance institutions and impact investors are increasingly interested in funding agro-industrial projects in Africa, many proposals fail to meet necessary financing standards. “The constraint, far more often than people appreciate, is not the availability of money. It is the availability of projects that are structured, documented, and de-risked to the standard required to receive financing,” he noted.
He detailed the parameters of a bankable sugar project, which must include a thorough feasibility study addressing agronomy, water resources, infrastructure, environmental risks, a robust financial model, clear land tenure arrangements, an outgrower development plan, and a reliable implementation strategy.
Bakrin further clarified that the SPAF is designed to bridge the gap between early-stage project concepts and bankable investments, emphasizing that it is not a grant but a structured initiative aimed at developing investor-ready sugar projects.
BOI representative Hadiza Shuaib indicated that the bank will act as the fund manager, overseeing credit appraisal, risk management, loan disbursement, and monitoring. She added that only businesses directly engaged in sugar or related activities will be eligible for the facility.
