BOI, NSDC set up N10bn fund to support greenfield sugar projects

By Abubakar Yunusa

The National Sugar Development Council (NSDC) and the Bank of Industry (BOI) have established a N10 billion sugar project acceleration fund (SPAF) as part of efforts to support the advancement of greenfield projects across the country.
According to a statement on Monday, the council announced the initiative during an interactive session meant to educate greenfield promoters who are potential beneficiaries.
The interactive session had representatives from Illaj Sugar, Brent Foods, Crystal Sugar, Legacy Sugar, Saro Sugar, Awaa, Ganic and Confluence Sugar for the greenfield projects.
The NSDC said the fund was established to provide financing and support the development of viable greenfield projects.
This, he said, is to accelerate the development of a sustainable and competitive sugar industry.
Speaking at the event, Kamar Bakrin, executive secretary and chief executive officer (CEO) of NSDC, said impact investors are actively seeking credible opportunities in African food systems.
“Here is a reality that every serious project promoter knows: Capital availability, on its own, will not result in sugar production,” Bakrin said.
“Development finance institutions manage billions of dollars in agro-industrial finance and are under pressure to deploy capital.
“The constraint, far more often than people appreciate, is not the availability of money. It is the availability of projects that are structured, documented, and de-risked to the standard required to receive financing.
“What does a bankable project look like? It begins with a technically credible feasibility study, one that addresses agronomy, water balance, infrastructure requirements, and social and environmental risks with the same rigour that a financier’s due diligence team will apply.
“It requires a robust financial model, one that stress-tests assumptions, demonstrates debt service capacity under adverse scenarios, and presents a capital structure that appropriately allocates risk.
“It demands a clear land tenure framework, an articulated outgrower model, a credible implementation plan with realistic milestones, and a management team whose track record inspires confidence.
“It must satisfy the ESG standards of the institutions whose capital it seeks, standards that are neither optional nor declining in rigour.
“Most projects that come to us do not yet meet this bar. That is not a criticism, it is the nature of early-stage project development. But it means that the journey from concept to financial close requires deliberate, structured investment in project preparation — investment that is frequently beyond the individual capacity of project promoters to absorb independently.”
Bakrin said the “NSDC’s structured pre-investment facility established to provide qualifying project promoters with the technical, financial, and advisory support required to develop their projects to bankable standard”.
“SPAF is not a grant programme, and it is not a gesture. It is a rigorous, output-oriented facility with clear eligibility criteria, defined deliverables, and an explicit objective: to build a credible, investor-ready pipeline of Nigerian sugar projects that can absorb the financing we are working to mobilise”.
On her part, Hadiza Shuaib, executive director of public sector and intervention programme at the BoI, said the bank will serve as the fund manager for SPAF, while the NSDC will provide sector leadership and technical guidance.
Shuaid, who led the team to the meeting, said beyond financing, the programme places strong emphasis on skills development and capacity building before and alongside funding.
She outlined the bank’s responsibilities in managing the fund, including credit appraisal, risk management, loan disbursement, monitoring and evaluation, and account closure following full repayment.
“As fund manager, BOI will ensure that projects are properly structured, risks are effectively managed, and funds are deployed responsibly,” Shuaib said.
“We are also strong advocates for skills development because financing alone is not sufficient to deliver sustainable outcomes.”
She said only businesses engaged in sugar or sugar-related activities can benefit from the fund.