Abuja, Nigeria – The National Sugar Development Council (NSDC) and the Bank of Industry (BOI) have established a N10 billion ($6.6 million USD) Sugar Project Acceleration Fund.
The initiative aims to support new greenfield sugar projects across Nigeria and strengthen domestic production capacity.
Okay News reports that the council disclosed the development in a statement on Sunday. The fund will provide financing and project development support to viable initiatives, accelerating growth in a sustainable and competitive sugar industry.
At an interactive session, NSDC Executive Secretary Kamar Bakrin stressed that access to capital alone does not guarantee higher sugar production. He noted that while development finance institutions have billions available for agro-industrial financing, a major challenge is the shortage of well-structured and properly documented projects.
The Sugar Project Acceleration Fund is designed to address this gap. It will provide financing and project development support for viable greenfield sugar projects across the country.
Bankable projects must begin with a technically credible feasibility study. This must address agronomy, water balance, infrastructure, and environmental and social risks.
Projects must also present a robust financial model, clear capital structure, land tenure framework, outgrower plan, and experienced management team. Compliance with environmental, social, and governance standards is mandatory.
The fund will ensure projects meet these standards to become investor-ready, promoting long-term growth in the sugar sector. It is a structured pre-investment facility supporting promoters with technical, financial, and advisory assistance.
Bakrin emphasized that the fund is not a grant but a results-driven initiative with defined eligibility criteria and deliverables.
Hadiza Shuaib of Bank of Industry explained that the bank will manage the fund. This includes credit appraisal, risk management, loan disbursement, monitoring, and account closure.
The National Sugar Development Council will provide sector leadership and technical guidance for project development. The program also focuses on skills development and capacity building to ensure sustainable outcomes.
Only businesses involved in sugar or sugar-related activities are eligible for support. Promoters present at the session included Illaj Sugar, Brent Foods, Crystal Sugar, Legacy Sugar, Saro Sugar, Awaa, Ganic, and Confluence Sugar.
The fund complements other federal initiatives supporting agriculture. The Federal Government recently approved a N250 billion facility for the Bank of Agriculture to provide smallholder farmers with credit at single-digit interest rates.
Agriculture Minister Abubakar Kyari said this initiative strengthens agricultural insurance and finance facilities. It leverages institutions including the Nigerian Agricultural Insurance Corporation, National Agricultural Quarantine Service, and Bank of Agriculture.
In September 2025, the Bank of Agriculture secured a $1 billion intervention fund with the African Export-Import Bank. This addresses financial challenges faced by smallholder farmers, offering affordable credit for inputs, mechanization, and market access.
The National Smallholder Farmers Fund targets farmers who produce over 90% of Nigeria’s agricultural output. These interventions enhance market access and financial support for the agricultural sector, complementing sugar industry growth initiatives.
 and the Bank of Industry (BOI) have established a N10 billion ($6.6 million USD) Sugar Project Acceleration Fund.){kind=link}