Sugar Industry Holds Key to Economic Expansion, Says Minister

Nigeria’s drive to achieve a $1 trillion economy will depend in part on revitalising its sugar industry, according to Minister of State for Industry, Trade and Investment, John Owan Enoh.

Speaking during a legislative hearing on the proposed amendment to the National Sugar Development Council (NSDC) Act, the minister said the sugar sector must be taken seriously if the country hopes to industrialize and reduce its reliance on imports.

“About two weeks ago, the President spoke about sugar at the FEC meeting,” Enoh said. “That in itself reflects the importance of sugar as a strategic industrial and domestic product that no country should take lightly, and Nigeria should be no exception.”

The hearing, hosted by the House Committee on Industry, explored ways to reposition the NSDC for better performance under the Nigeria Sugar Master Plan (NSMP), which seeks to boost local production and cut down foreign exchange losses.

NSDC Executive Secretary Kamar Bakrin said Nigeria could save over $1 billion annually if the sugar master plan is fully implemented. However, he warned that progress might be stalled by a new policy directing that half of the sugar levy be paid into the Consolidated Revenue Fund.

“The sugar levy was not intended as a general revenue-generating mechanism but as a dedicated fund to support the sector’s growth,” Bakrin said. “Redirecting it threatens to defeat its original purpose.”

Bakrin noted that realising the NSMP’s full goals will require an estimated $4.5 billion in private-sector investment and urged lawmakers to maintain clear, rule-based policies that foster investor confidence.

Concerns about regulatory duplication were also raised by NAFDAC, whose representative, Iba Edward, cautioned against provisions in the amendment that might overlap with existing mandates.

“Some proposed provisions encroach on NAFDAC’s core responsibilities under Section 5 of our Act,” she said, calling for legislative clarity.

Major industry stakeholders echoed the need for policy consistency. A representative of BUA Group, Aliyu Idi Hong, revealed that the company is developing a 50,000-hectare sugar plantation, with 20,000 hectares already in use.

Onome Okurah of Flour Mills of Nigeria also detailed the company’s efforts through its Golden Sugar Company, which currently cultivates over 6,000 hectares in Niger State and supports production for four months annually.

“With stronger partnerships, we expect tangible results in the coming years,” Okurah said.

Chairman of the Committee, Hon. Enitan Dolapo Badru, assured stakeholders that the amendment would be comprehensive and aimed at equipping the NSDC to deliver on its mandate.