The National Sugar Development Council (NSDC) and the Bank of Industry (BOI) have teamed up to establish a N10 billion Sugar Project Acceleration Fund (SPAF), aimed at fast-tracking the development of greenfield sugar projects across Nigeria. The initiative is designed to provide financial support and project development guidance to viable sugar ventures, with the ultimate goal of building a sustainable and competitive sugar industry nationwide.
To familiarize stakeholders with the fund, NSDC recently hosted an interactive session where officials from both organizations detailed the fund’s structure, eligibility criteria, and opportunities for potential beneficiaries. The session offered an in-depth look at how the fund intends to transform early-stage sugar projects into investor-ready ventures.
Speaking at the event, NSDC Executive Secretary/CEO, Mr. Kamar Bakrin, emphasized that access to capital alone does not ensure the success of sugar projects. “Capital availability, on its own, will not result in sugar production,” Bakrin noted, highlighting that many promising projects often fail to meet the rigorous standards needed for financing from development institutions and impact investors.
Bakrin further explained that a bankable sugar project must include a comprehensive feasibility study covering agronomy, water resources, infrastructure, and environmental risks. Projects should also feature a robust financial model, clear land tenure arrangements, an outgrower development plan, and a credible implementation strategy. The SPAF is designed to bridge the critical gap between early-stage project concepts and fully structured, finance-ready sugar initiatives.
Ms. Hadiza Shuaib, representing BOI, outlined the bank’s role as fund manager, overseeing credit appraisal, risk management, loan disbursement, and ongoing monitoring. She stressed that the fund is targeted exclusively at businesses engaged in sugar production or related activities, ensuring that only serious and viable projects benefit from the facility.
source: vanguard