The National Sugar Development Council (NSDC) and the Bank of Industry (BOI) have unveiled a N10 billion Sugar Project Acceleration Fund (SPAF) to support greenfield sugar projects and strengthen Nigeria’s sugar value chain.
Mr. Kamar Bakrin, Executive Secretary of the NSDC, has outlined the strategic objectives of the Sugar Project Advisory Fund (SPAF).
He noted that the fund serves as a catalyst for a sustainable sugar industry by offering both financial backing and project development expertise to viable promoters.
The SPAF is specifically engineered to de-risk early-stage ventures, elevating them to a standard where they can successfully engage with development finance institutions.
Bakrin clarified that the primary hurdle for many domestic projects is not just a lack of capital, but a failure to meet the bankability criteria required by major lenders.
“Development finance institutions globally manage billions of dollars for agro-industrial investments but require projects that are properly structured and de-risked before funding,” he said.
Bakrin added that many proposed sugar projects struggle to attract investment due to the absence of credible feasibility studies, strong financial models and clear implementation strategies.
He noted that bankable projects must demonstrate sound agronomic planning, infrastructure readiness, realistic timelines and responsible environmental and social governance standards.
The NSDC chief described the SPAF as a structured pre-investment facility that would support promoters with technical, financial and advisory services required to prepare investment-ready projects.
“SPAF is not a grant programme but a rigorous facility with defined eligibility criteria and deliverables aimed at building a credible pipeline of investor-ready sugar projects.”
An official of the Bank of Industry, Hadiza Shuaib, said the bank would serve as the fund manager while the NSDC would provide sector leadership and technical guidance.
Shuaib explained that BOI would oversee credit appraisal, risk management, loan disbursement, monitoring and evaluation, as well as account closure after full repayment.
She added that the programme also emphasises skills development and capacity building to ensure the long-term sustainability of supported projects.
According to her, only businesses engaged in sugar or sugar-related activities will qualify to benefit from the fund.
Greenfield promoters present at the session included Illaj Sugar, Brent Foods, Crystal Sugar, Legacy Sugar, Saro Sugar, Awaa, Ganic and Confluence Sugar.
The initiative is expected to strengthen Nigeria’s sugar value chain and support the development of new large-scale sugar projects across the country.
Officials of the council also educated prospective greenfield promoters on how to access the fund and develop investment-ready projects.
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