The House of Representatives Committee on Industry has announced plans to amend the statute establishing the National Sugar Development Council and make the required changes to enable the management team to successfully develop the Nigeria Sugar Master Plan II.
According to a statement released on Sunday, the committee’s Chairman, Dolapo Badru, said this on Saturday during a retreat for committee members in Calabar, the capital of Cross River State. Badaru stated that the committee members had agreed on the premise of taking actions to implement the council’s 2025 sugar project development plan.
Badru praised the Executive Secretary/CEO of the National Sugar Development Council, Kamar Bakrin, and his management team for their ‘amazing’ performance over the last year.
He reaffirmed the committee’s commitment to the institutional measures needed to carry out the Council’s development plan for the sugar project by 2025. “To improve investor confidence and address the loophole in the current law that enables some operators to get away with not contributing to the realisation of the vision for the sugar industry, properly codifying the NSMP into law is required,” he stated.
“All the loopholes will be addressed in the proposed amendment of the NSDC Act.” The NSDC Executive Secretary/CEO stated during his keynote speech at the retreat that some establishment law flaws needed to be closed before the 2025 plans and the Sugar Master Plan II could be implemented.
According to Barkin, the council has outlined the 2025 activities that will propel the master plan’s realisation. “We have focused on resetting the agenda and realigning the industry to the high expectations of Nigerians in 2024,” he stated.
2025 is the year of acceleration for us. Given our macroeconomic reality and the enormous benefits we know can be derived from the growing and processing of sugarcane, this is not a choice rather, it is a necessity.
“Our primary targets for 2025 are to (i) accelerate project development; (ii) facilitate $5 billion in investment in the industry; (iii) ensure our priority greenfield projects are ready for investment; and (iv) strengthen NSDC’s capabilities to develop the sector. “We have defined the actions that will be implemented in 2025 to drive the achievement of these objectives.
One of these main initiatives is to revise the NSDC Act to close gaps caused by contradictory policies and formalise its market protection requirements. “This is a critical demand that comes up in all of our talks with present and prospective investors and financiers. As always, we will rely on the House Committee’s advice and support to make this happen in 2025.
“We express our deep gratitude for the ongoing guidance and support this event receives from Mr. President. Its resolution of significant problems impeding its operations has given investors peace of mind that investing in the Nigerian sugar industry is a wise decision.” Following his appointment by President Bola Tinubu, Bakrin returned to work on October 16, 2023, and he also briefed the Committee members on the events of the previous year.
“Since my return to office, we have worked to address the underlying obstacles that have hampered investment in the sector, such as: How can sugar production in Nigeria become viable? How do we maximise the benefits of sugarcane processing? How can we better connect the NSMP’s incentives with performance? How can we rebrand NSDC as a world-class development agency rather than just a regulator?”Working with our investors and stakeholders, we reimagined NSMP II.”The goals of NSMP II are now threefold: achieve self-sufficiency in sugar production, establish a globally competitive industry, become Africa’s cost leader, and develop an inclusive and sustainable sugar sector.
“These objectives shall be realised using seven pillars that indicate the key changes that need to be made— (i) Ensure sugarcane farming for the Backward Integration Programme is only carried out on suitable land; (ii) Partner with investors who are adequately motivated and possess the financial resources to execute and pedigree to attract funding into their projects; (ii) Attract the right mix of capital suitable for a capital-intensive, long-gestation business such as sugar; and (iv) Provide directly relevant research, development, and continuous improvement.
“We have also started many efforts to increase our capabilities at NSDC and NSI. “We are strengthening NSDC’s technical and managerial capabilities while also transforming NSI’s research and development capacity,” he stated.
In Essence
The planned amendment of the National Sugar Development Council (NSDC) statute to align with the Nigeria Sugar Master Plan (NSMP) II is a vital step in ensuring the growth and sustainability of Nigeria’s sugar industry.
The initiative reflects a broader push toward achieving self-sufficiency in sugar production, which is crucial for reducing Nigeria’s dependence on imports, creating jobs, and boosting the economy.
The fact that the House of Representatives Committee on Industry is actively involved in updating the legal framework demonstrates a commitment to long-term, structural reforms that address current gaps in policy and regulation.
The Sugar Master Plan II’s goals—self-sufficiency, global competitiveness, cost leadership in Africa, and sustainability—are ambitious but necessary if Nigeria is to transform its sugar industry.
The current challenges in the sector, including inconsistent investor confidence and regulatory loopholes that allow some operators to evade their responsibilities, need to be addressed through stronger legal provisions.
Revising the NSDC Act to close these loopholes is essential for fostering a more robust and transparent regulatory environment, which would, in turn, encourage greater investment.
