NSDC And Chinese Conglomerate SINOMACH Sign $1 Billion Sugar Production Deal.
The National Sugar Development Council (NSDC) has entered into a landmark agreement with Chinese industrial giant SINOMACH for the development of a large-scale sugarcane cultivation and processing project in Nigeria. The memorandum of understanding (MoU), signed in Abuja, aims to bolster Nigeria’s sugar industry with the potential to generate up to one million metric tonnes of locally produced sugar.
The agreement marks an early success of the Nigeria-China Strategic Partnership, a major initiative under President Bola Ahmed Tinubu. The collaboration is expected to attract investments of up to $1 billion, providing a substantial boost to Nigeria’s agro-industrial development.
Under the terms of the MoU, SINOMACH will initially establish a sugar production plant and sugarcane plantation with a capacity to produce 100,000 metric tonnes of sugar annually. The NSDC will provide critical support, helping to secure regulatory approvals and facilitate the implementation of the project.
The Executive Secretary and Chief Executive Officer of NSDC, Kamar Bakrin, described the partnership as a “pivotal step” in Nigeria’s journey towards economic self-sufficiency and food security.
“2025 is a critical period in which we expect to make significant progress in our national development agenda,” said Bakrin. “A robust sugar industry will create thousands of jobs, support rural infrastructure, and significantly reduce foreign exchange outflows by cutting down sugar imports, which currently dominate our national consumption.”
He further explained that the project’s unique model – combining engineering, procurement and construction (EPC) with development financing – would serve as a blueprint for other sectors seeking rapid industrial growth.
“This arrangement allows us to embrace a creative and transformative approach, achieving scale and speed – two vital ingredients for Nigeria’s development,” Bakrin added. “If implemented successfully, the model could be replicated across other sectors of Nigeria’s economy.”
The Vice President of SINOMACH, Li Xiao Yu, expressed admiration for Nigeria’s commitment to achieving sugar self-sufficiency under the National Sugar Master Plan (NSMP). He described the partnership as a “sweet revolution” that aligns with broader goals of food sovereignty and industrial development.
“As Africa’s largest economy, Nigeria’s strategic efforts to develop its sugar industry are impressive,” said Mr Li. “This project will enhance self-sufficiency, generate jobs, modernise the agricultural value chain and deliver long-term social and economic benefits.”
He emphasised that the partnership was more than just a business transaction. “It is a concrete step towards realising the shared vision of both our nations to deepen agricultural cooperation and promote mutual growth.”
The NSDC-SINOMACH agreement is expected to significantly boost Nigeria’s domestic sugar production, reduce reliance on imports, and serve as a catalyst for broader industrial transformation across the country.
