The National Sugar Development Council and the Bank of Industry have established a N10 billion Sugar Project Acceleration Fund to support new greenfield sugar projects across Nigeria.
The council disclosed the development in a statement on Sunday, stating that the initiative aims to strengthen domestic production capacity and accelerate 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 by providing financing and project development support for viable greenfield sugar projects across the country.
Bakrin emphasized that bankable projects must begin with a technically credible feasibility study addressing agronomy, water balance, infrastructure, and environmental and social risks.
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Projects must also present a robust financial model, clear capital structure, land tenure framework, outgrower plan, and experienced management team with compliance to environmental and governance standards.
The fund is not a grant but a results-driven initiative with defined eligibility criteria and deliverables, according to the NSDC executive secretary.
Hadiza Shuaib of Bank of Industry explained that the bank will manage the fund, including 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, while the program also focuses on skills development and capacity building.
Only businesses involved in sugar or sugar-related activities are eligible for support, with promoters at the session including Illaj Sugar, Brent Foods, Crystal Sugar, Legacy Sugar, and Saro Sugar.
The fund complements other federal initiatives supporting agriculture, including a N250 billion facility for the Bank of Agriculture to provide smallholder farmers with credit at single-digit interest rates.
These interventions enhance market access and financial support for the agricultural sector, complementing sugar industry growth initiatives.
