Nigeria's sugar production dropped by 35% in 2023, falling to 30,053 metric tons from 46,479 metric tons in 2022, according to new data from the National Sugar Development Council (NSDC)—a surprising dip in a sector that has seen rising investments in recent years.
Despite billions in incentives and large-scale investments by key players like Golden Sugar Company, Dangote Sugar, and BUA, the decline comes amid the impact of a weaker naira, falling consumer demand, and growing health consciousness.
Sugar consumption also fell by 16%, and imports declined to 1.4 million metric tons, down from 1.7 million metric tons in 2022, reflecting reduced demand and purchasing power.
Since the introduction of the Backward Integration Policy (BIP) in 2012, Nigeria has aimed to reduce sugar imports, stimulate local production, and build capacity across the value chain. Industry players have since expanded plantations, invested in milling infrastructure, and benefited from import quotas and tax incentives.
While challenges remain, experts argue that continued investment under the BIP could eventually position Nigeria as West Africa's top sugar producer.
The second phase of the National Sugar Master Plan (NSMP), running through 2033, now ties sugar import quotas directly to BIP performance—further pushing for genuine local growth.
