Nigeria Strikes $1 Billion Sugar Pact With China to Crush Import Dependence

By Achimi Muktar

In a game-changing move set to redefine Nigeria’s agricultural landscape, the country has sealed a whopping $1 billion investment deal with Chinese industrial giant SINOMACH, aimed squarely at ending Nigeria’s reliance on imported sugar.

The landmark agreement, signed through a Memorandum of Understanding (MoU) with the National Sugar Development Council (NSDC), will kickstart one of the most ambitious agro-industrial projects in Nigeria’s history — a massive sugarcane cultivation and processing enterprise expected to become the largest in West Africa.

A Billion-Dollar Bet on Nigeria’s Sweet Future

NSDC Executive Secretary, Mr. Kamar Bakrin, disclosed in an exclusive interview with the News Agency of Nigeria (NAN) on Sunday that the project marks a major milestone under President Bola Tinubu’s Nigeria-China Strategic Partnership initiative.

“This isn’t just an investment — it’s a revolution,” Bakrin said. “2025 is a critical year for us, and this move signals our commitment to food security, job creation, and economic sovereignty.”

The initial plan will see SINOMACH construct a state-of-the-art sugar processing plant capable of handling 100,000 metric tonnes of sugar annually, with an eye on scaling up to one million metric tonnes in the coming years.

From Cane to Cash: Transforming the Rural Economy

The implications of this mega-deal go far beyond sugar. According to Bakrin, the project is expected to create thousands of jobs, spur rural infrastructure development, and conserve foreign exchange by cutting down on sugar imports — a key drain on Nigeria’s economy.

“This model combines engineering, construction, and development finance — it’s an all-in-one formula for agro-industrial transformation,” he added, assuring that NSDC will provide full support, from securing land to fast-tracking approvals.

China Calls It a “Sweet Revolution”

For SINOMACH, the venture aligns perfectly with Nigeria’s Sugar Master Plan — a 10-year roadmap to make the nation at least 70% self-sufficient in sugar production. The company’s Vice President, Mr. Li Yu, lauded the plan and Nigeria’s readiness to deliver.

“We see this as more than a business deal,” Li said. “It’s a partnership for progress — one that could position Nigeria as the Sugar Bowl of West Africa.”

SINOMACH is also exploring yuan-based financing models to ease capital flow and lower borrowing costs, potentially speeding up implementation.

What’s at Stake: Beyond the Sweetness

The NSDC, established in 1993 and restructured in 2015, has long championed the sugar sub-sector’s transformation. The council’s mission is to turn Nigeria from a major sugar importer into a net exporter, using sugar not just as a food product but as a springboard for economic diversification.

If successful, this sugar deal could become the blueprint for future agro-industrial collaborations — and a reminder that the path to Nigeria’s self-reliance might just be lined with sugarcane.