New Sugar Project Acceleration Fund aims to support greenfield investors with financing, technical support, and project preparation to boost local sugar production……
The National Sugar Development Council has partnered with the Bank of Industry to establish a N10bn Sugar Project Acceleration Fund (SPAF) aimed at supporting the development of new sugar projects across Nigeria.
The initiative is designed to provide financing and project development support to viable greenfield investments, with the broader goal of accelerating the growth of a sustainable and competitive sugar industry in the country.
In a statement released on Sunday, the council said it recently hosted an interactive session where officials from both institutions engaged potential beneficiaries, offering guidance on how project promoters can access the fund and meet its requirements.
Speaking at the event, the Executive Secretary and Chief Executive Officer of the council, Kamar Bakrin, stressed that access to capital alone does not automatically translate into increased sugar production.
According to him, while development finance institutions and investors are willing to fund agro-industrial ventures, many proposed projects struggle to meet the technical and financial standards required for funding.
“Capital availability, on its own, will not result in sugar production,” Bakrin said.
He explained that development finance institutions control billions of dollars earmarked for agro-industrial investments and are under pressure to deploy those funds, while impact investors are actively searching for credible opportunities within African food systems.
However, he noted that the real challenge often lies in the lack of properly structured and well-documented projects capable of attracting financing.
Bakrin explained that a truly bankable sugar project must start with a robust feasibility study that thoroughly evaluates critical elements such as agronomy, water availability, infrastructure requirements, and environmental and social risks.
Beyond technical feasibility, he said projects must also present solid financial models capable of demonstrating their ability to service debts even under adverse market conditions.
According to him, project developers must also establish clear land ownership structures, workable outgrower arrangements with farmers, and realistic implementation plans backed by experienced management teams.
“Most projects that come to us do not yet meet this bar,” he said, adding that this is typical of early-stage project development.
Because of this gap, he explained, many investors struggle to move from concept to financial close without significant investment in project preparation.
Bakrin described the Sugar Project Acceleration Fund as a structured pre-investment facility designed to help promising projects overcome these barriers.
“SPAF is NSDC’s structured pre-investment facility established to provide qualifying project promoters with the technical, financial, and advisory support required to develop their projects to bankable standard,” he said.
He emphasized that the programme is not a grant initiative but a results-driven facility with clearly defined eligibility criteria and deliverables aimed at building a pipeline of investor-ready sugar projects in Nigeria.
Also speaking at the event, Hadiza Shuaib, who led the Bank of Industry delegation, explained that the bank would serve as the fund manager while the NSDC provides sector leadership and technical oversight.
She said the bank’s responsibilities will include credit appraisal, risk management, loan disbursement, monitoring, evaluation, and eventual account closure upon full repayment.
According to Shuaib, the programme also places strong emphasis on skills development and capacity building to ensure that funded projects achieve sustainable results.
“As Fund Manager, BOI will ensure that projects are properly structured, risks are effectively managed, and funds are deployed responsibly,” she said.
She added that only companies engaged in sugar production or related activities would be eligible to benefit from the fund.
Several greenfield project promoters participated in the interactive session, including Illaj Sugar, Brent Foods, Crystal Sugar, Legacy Sugar, Saro Sugar, Awaa, Ganic, and Confluence Sugar.
Industry observers say the initiative could play a key role in expanding Nigeria’s domestic sugar production and reducing the country’s heavy reliance on imports if successfully implemented.
About the Author
