By Felicia Nwosu

The Nigerian sugar market is expected to grow at a CAGR of 5.14% over the forecast period to reach US$494.116 million by 2027 from US$347.899 million in 2020.

Research & Market in its market analysis revealed that Nigeria is witnessing rapid urbanization and development in food processing which has boosted people’s consumption scale of food & beverage items thereby simultaneously propelling the scale of sugar consumption.

According to the United States Department of Agriculture, in May 2022, domestic sugar consumption in Nigeria stood at 1.62 million tons which represented an increase of 1.3% in comparison to 2021.

The product which are identified based on crop type, is segmented as sugarcane and sugar beets. The sugarcane crop segment is expected to grow at a significant rate during the forecast period of the Nigeria sugar market, owing to the rapid increase in sugarcane farming.

Available  statistics also showed that Favorable investment inflows  are expected to  boost the sugar sector growth which  will positively impact the sugar market in Nigeria, as the  sector  is considered one of the major sectors in the country witnessing an increase in domestic  consumption.

It affirmed that major market players and institutions are undertaking investment strategies to boost its  production in Nigeria.

According to report by Research and Market platform, these major  industry key players include Dangote Group, who in  November 2022, announced a US$700 million investment in its Backward Integration Program to enhance its DSR Numan sugar refining capacity from 3,000 tonnes of cane per day to 6,000, 9,800, and 15,000  Tons of Cane per Day, (tcd).

The report added that the company further revealed its plans to increase its sugar plantation area from 8,700 hectares in 2022 to 24,200 in the next seven years.

As part of the plans towards the development of the sugar market, it disclosed that   Africa Finance Corporation, in December 2021, provided an investment of US$200 million to Nigeria-based sugar producer BUA Industries, which came as a proactive measure to boost the country’s sugar sector.  While Flour Mills of Nigeria PLC, in April 2021 announced the acquisition of additional 5,200 hectares of land at Sunti, which has expanded the Sunti Sugar Golden estate to 22,000 hectares, an acquisition that also came as the company’s commitment to boosting the sugar industry in Nigeria.