China has taken a bold step in reinforcing its economic presence in Africa by signing a $1 billion agreement with Nigeria to launch a massive sugarcane cultivation and processing project.
The deal, inked between the National Sugar Development Council (NSDC) and Chinese industrial giant SINOMACH, is expected to supercharge Nigeria’s sugar industry while deepening Beijing’s strategic influence on the continent.
According to NSDC Executive Secretary, Mr. Kamar Bakrin, the partnership is one of the first fruits of the Nigeria-China Strategic Partnership, spearheaded by President Bola Tinubu. In a chat with the News Agency of Nigeria (NAN), Bakrin confirmed that the investment could scale up to $1 billion.
Under the agreement, SINOMACH will build a state-of-the-art sugar processing plant and establish a large-scale sugarcane farm. The facility will initially handle 100,000 metric tonnes of sugar annually, with a long-term goal of ramping up production to a staggering 1 million metric tonnes.
“This partnership is unlike any other—it blends engineering, procurement, and construction (EPC) with development financing, a critical recipe for agro-industrial transformation,” Bakrin stated.
 Closing the Gap in Nigeria’s Sugar Industry
For years, Nigeria’s sugar market has been dominated by corporate giants like Dangote and BUA Group. Yet, one vital element has remained elusive: domestic production. Most sugar refineries still depend heavily on imported raw materials.
To address this, the government introduced the Nigeria Sugar Master Plan (NSMP) in 2012—a 10-year policy aimed at encouraging backward integration by pushing refineries to invest in local farming and processing. However, progress has lagged due to poor infrastructure, bureaucratic bottlenecks, and policy inconsistencies.
Despite these setbacks, Nigeria’s sugar demand continues to grow, driven by a rising population and increased industrial consumption in the food and beverage sectors. The country now consumes over 1.5 million metric tonnes annually—yet imports account for over 90% of this demand.
 What This Means for Nigeria
The China-backed project is poised to reshape Nigeria’s sugar landscape. Beyond boosting production, it promises to:
- Create thousands of jobs in farming, logistics, research, and processing.
- Enhance rural development through better infrastructure.
- Conserve foreign exchange by reducing sugar imports.
- Set a model for broader industrialization in the agro-processing sector.
This deal not only signals China’s growing role in Africa’s economic development but also offers Nigeria a golden opportunity to finally unlock the untapped potential of its sugar industry.
