Nigeria’s sugar import bill soars 328% in 5 Years amidst local production failure

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Nigeria’s sugar importation bill has skyrocketed by 328% in five years, from 2020 to 2024, reaching N2.21 trillion. This sharp increase reflects the gross underperformance of the sugar sector despite over 15 years of efforts towards self-sufficiency through local production.

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According to the National Bureau of Statistics (NBS), the country’s sugar importation bill rose significantly from N516.61 billion in the preceding five years to 2019. The National Sugar Development Council (NSDC) attributes this to the country’s low sugar production capacity, which currently stands at 40,000 metric tonnes, far below the annual demand estimated at 1.7 million tonnes.

This represents a demand deficit of 1.75 million metric tonnes or 97%. The NSDC notes that this deficit has remained largely unchanged since 2010 when the first phase of the National Sugar Master Plan (NSMP) was introduced with the aim of eliminating sugar importation by 2020

The NSMP aimed to create and execute a backward integration programme that would lead to the elimination of imports and stoppage of sugar import licensing by 2020. However, actual results show that the programme is going in the opposite direction, increasing importation into the country.

The NSMP had projected the establishment of 28 sugar factories and the cultivation of 250,000 hectares of land for sugarcane production. While the programme has attracted private sector operators like Dangote Sugar and BUA Foods, the expected results have not been achieved.

As the NSDC notes, “Very little progress has been achieved over the 15 years of the NSMP.” The failure of the NSMP to achieve its objectives has led to the continued reliance on imported sugar, with significant implications for the country’s economy and food security.