By Joy Baba-Yesufu
Nigeria’s sugar production declined by 35 percent in 2023, falling to 30,053 metric tons from 46,479 metric tons recorded the previous year, despite sustained investments by sugar refiners and ongoing government incentives.
This is according to data from the National Sugar Development Council (NSDC), which also shows that sugar imports dipped by 16 percent—from 1.7 million metric tons in 2022 to 1.4 million metric tons in 2023.
The drop in production and imports coincided with a 16 percent decline in national sugar consumption, attributed to weakening consumer purchasing power and a growing shift towards healthier diets among Nigerians.
Despite the setbacks, the industry continues to benefit from significant government support, including tax holidays, crop loans, preferential import tariffs, and other fiscal incentives aimed at boosting local production and reducing import dependence.
The Backward Integration Policy (BIP), introduced in 2012 as part of the National Sugar Master Plan (NSMP), was designed to strengthen domestic capacity by supporting local sugarcane farming, creating jobs, and developing value chains. However, NSDC figures show that Nigeria has produced an average of just 17,625 metric tons of sugar annually since the policy’s inception far below national demand.
In 2020, the country’s sugar requirement stood at 1.53 million metric tons. Yet, despite the ambitions of the NSMP and continued private-sector investments, Nigeria ranks fourth in sugar production in West Africa and 19th on the continent.
Analysts say sustained policy enforcement, improved infrastructure, and financing for farmers are critical if Nigeria is to close the gap between domestic demand and supply.
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