The Nigeria Governors’ Forum (NGF) has resolved to adopt sugar production as a strategic pillar for industrial development across the states, with the goal of boosting local manufacturing, creating jobs and diversifying the economy.

The resolution followed engagements with the National Sugar Development Council (NSDC), which urged governors to prioritise sugar projects as a pathway to ending Nigeria’s dependence on imported raw sugar and achieving national self-sufficiency.

As part of the decision, the NGF Secretariat will classify sugar projects as priority investments in its engagements with development partners locally and internationally. The Forum also agreed to enter into a structured partnership with the NSDC to accelerate sugar project development at the state level. The collaboration will support states in preparing investor-ready projects, facilitate engagement between state governments, investors and industry operators, and improve coordination around key enablers such as land access, infrastructure and incentive frameworks.

Speaking at the meeting, the Executive Secretary and Chief Executive Officer of the NSDC, Mr. Kamar Bakrin, highlighted the vast investment opportunities in the sugar sector and called on governors of sugarcane-producing states to take advantage of them. He identified Oyo, Kwara, Niger, Nasarawa, Kaduna, Kano, Bauchi, Gombe, Jigawa, Adamawa and Taraba as states with suitable land for profitable sugarcane cultivation.

Bakrin explained that recent macroeconomic developments have improved the competitiveness of local sugar production. While global sugar prices have remained relatively stable, exchange rate movements have made imports more expensive, increasing the commercial viability of domestically produced sugar, whose inputs are largely priced in naira.

He added that Nigeria possesses strong fundamentals for large-scale sugar production, including abundant land, water resources, labour and supportive policy incentives. According to him, assessments have identified about 1.2 million hectares of land suitable for sugarcane cultivation nationwide, even though only about 200,000 hectares are required to achieve national self-sufficiency.

Bakrin disclosed that Nigeria’s sugar industry is currently valued at about $2 billion, with the wider African market estimated at $7 billion under the African Continental Free Trade Agreement. He further noted that sugar by-products alone represent an estimated $10 billion market in Nigeria.

On social impact, he assured that sugar projects promote inclusive development by integrating host communities into the value chain through outgrower schemes, employment opportunities and partnerships, rather than displacing them. He added that sugarcane projects also support environmental sustainability.

Highlighting the commercial appeal of the sector, Bakrin said a standard sugar project producing 100,000 metric tonnes annually requires an estimated investment of $250 million and offers an internal rate of return of about 24 per cent, with additional value from ethanol and bio-electricity production.

Also speaking, the Director-General of the NGF, Dr. Abdulateef Shittu, said many states are already involved, or eager to participate, in sugar-related investments spanning land development, agricultural schemes and agro-industrial initiatives. However, he stressed that realising the sector’s full potential requires strong coordination, credible investment frameworks and alignment between federal policies and state development priorities.

According to Shittu, the Forum will ensure that state-level development strategies increasingly prioritise sugar investments, given their capacity to drive rural development and create jobs.