The National Sugar Development Council (NSDC) and the Bank of Industry (BOI) have introduced a ₦10 billion Sugar Project Acceleration Fund (SPAF) to support new sugar projects by helping companies properly prepare and structure their projects so they can attract larger investments and financing.
The fund focuses mainly on greenfield projects — new sugar ventures that are still at the early development stage. Through the initiative, project promoters will receive technical, financial and advisory support to help turn their ideas into bankable investment opportunities.
The Council explained that the facility is designed to help Nigerian sugar projects meet the standards required by investors, development finance institutions and commercial lenders.
The initiative was presented during an interactive session where officials from NSDC and BOI engaged potential beneficiaries and explained how the facility will work.
Speaking at the event, the Executive Secretary and Chief Executive Officer of NSDC, Kamar Bakrin, said access to capital is not the main problem facing many sugar projects.
Instead, he noted that many proposed projects fail to attract funding because they are not properly prepared or structured to meet the expectations of investors.
“Here is a reality that every serious project promoter knows: capital availability, on its own, will not result in sugar production,” Bakrin said.
He explained that development finance institutions and investors already have significant capital available for agro-industrial projects across Africa.
“Development finance institutions manage billions of dollars in agro-industrial finance and are under pressure to deploy capital. Impact investors are actively seeking credible opportunities in African food systems,” he said.
According to him, the real challenge is the shortage of well-prepared projects that meet the technical and financial requirements needed to secure investment.
“The constraint, far more often than people appreciate, is not the availability of money. It is the availability of projects that are structured, documented, and de-risked to the standard required to receive financing,” he added.
Bakrin said properly prepared projects must meet several requirements before they can attract financing.
These include credible feasibility studies that examine key factors such as agronomy, water availability, infrastructure needs and environmental and social risks.
Projects must also include strong financial models that test assumptions, demonstrate the ability to repay loans under difficult scenarios and clearly outline how investment risks will be managed.
He further explained that clear land ownership arrangements, structured outgrower schemes, realistic implementation plans and experienced management teams are also essential.
“It must satisfy the ESG standards of the institutions whose capital it seeks — standards that are neither optional nor declining in rigour,” he stated.
Bakrin noted that many early-stage projects struggle to meet these standards because preparing such detailed documentation and technical analysis requires significant resources.
“Most projects that come to us do not yet meet this bar. That is not a criticism; it is the nature of early-stage project development,” he said.
“But it means that the journey from concept to financial close requires deliberate, structured investment in project preparation.”
He explained that SPAF was created to fill this gap.
“SPAF is NSDC’s structured pre-investment facility, established to provide qualifying project promoters with the technical, financial and advisory support required to develop their projects to bankable standard,” he said.
He emphasised that the facility is not a grant scheme.
“SPAF is not a grant programme, and it is not a gesture. It is a rigorous, output-oriented facility with clear eligibility criteria and defined deliverables,” Bakrin said.
Also speaking at the session, Ms Hadiza Shuaib, who led the BOI team to the meeting, said the Bank of Industry will serve as the fund manager for the initiative.
According to her, BOI will oversee the financial management and operational processes required to ensure the facility is properly implemented.
“As Fund Manager, BOI will ensure that projects are properly structured, risks are effectively managed, and funds are deployed responsibly,” she said.
She explained that the bank will handle key functions including credit appraisal, risk management, loan disbursement, monitoring and evaluation, as well as account closure once funds have been repaid.
Shuaib also noted that the programme places strong emphasis on skills development and capacity building alongside financing.
“We are also strong advocates for skills development, because financing alone is not sufficient to deliver sustainable outcomes,” she added.
Only businesses involved in sugar production or related activities will be eligible to access the fund.
Companies represented at the interactive session included Illaj Sugar, Brent Foods, Crystal Sugar, Legacy Sugar, Saro Sugar, Awaa, Ganic and Confluence Sugar.
