Faith Nyasuguta
China has deepened its economic influence in Africa through a new $1 billion agreement with Nigeria, focused on large-scale sugarcane cultivation and processing. The deal, signed between Chinese state-owned conglomerate SINOMACH and Nigeria’s National Sugar Development Council (NSDC), is expected to significantly transform Nigeria’s sugar industry while strengthening Beijing’s strategic presence on the continent.
NSDC Executive Secretary, Kamar Bakrin, described the agreement as a milestone of the Nigeria-China Strategic Partnership, endorsed by President Bola Tinubu. He said the partnership will attract up to $1 billion in investments and serve as a model for agro-industrial transformation.
As part of the deal, SINOMACH will establish a sugarcane plantation and build a modern sugar processing plant with an initial annual capacity of 100,000 metric tonnes. The long-term vision is to scale production to one million metric tonnes annually. The project is also expected to generate thousands of jobs, boost rural infrastructure, conserve foreign exchange, and reduce Nigeria’s dependence on imported raw sugar.
“This partnership with SINOMACH is unique. It combines engineering, procurement, and construction (EPC) with development financing, an essential model for agro-industrial transformation,” Bakrin told the News Agency of Nigeria.
Nigeria’s sugar sector has long been dominated by industry giants like Dangote and BUA Group. However, the country remains heavily reliant on sugar imports due to limited domestic cultivation and weak local processing capacity. In response, the Nigerian government launched the Nigeria Sugar Master Plan (NSMP) in 2012 to promote backward integration by encouraging sugar refineries to invest in local production.
Despite the ambitious plan, progress has been slow. As of 2020, over 90% of Nigeria’s sugar was still imported. The delays have been blamed on infrastructure challenges, complex bureaucracy, and the political economy surrounding sugar import waivers and subsidies.
Nigeria’s annual sugar demand is estimated at 1.5 million metric tonnes and continues to rise due to population growth and industrial expansion. Experts believe the new Chinese-backed project could finally unlock the potential of Nigeria’s sugar industry, aligning with the broader national goals of self-sufficiency and economic diversification.
The sugar deal not only highlights China’s growing role in Africa’s industrial development but also presents a possible turning point for Nigeria’s decades-old struggle to reduce its sugar import bill and build a robust, homegrown industry.
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