Nigeria’s cane sugar production projected to drop

Nigeria's domestic cane sugar production is facing a significant challenge, with a projected 6% drop to 75,000 metric tons, according to the United States Department of Agriculture's Foreign Agricultural Service. This decline comes at a time when sugar consumption in the country is on the rise, with a projected increase from 1.61 million metric tons to 1.62 million. The discrepancy between production and consumption highlights the growing need for Nigeria to focus on local sugar production to reduce reliance on imports. The government has attempted to address this issue through policies aimed at promoting local production, but these efforts have not been entirely successful, as challenges in the sugar production chain persist. Akintunde Sawyer, an Agric Consultant, shed light on the key challenges hindering the growth of Nigeria's sugar production industry in an interview with CNBC Africa. One of the major hurdles facing the sugar production industry in Nigeria is the availability and access to land. Urbanization poses a threat to land earmarked for sugar cane production, as urban expansion encroaches on agricultural land. Land disputes further compound the issue, with local communities raising objections and demanding a share of the land allocated for sugar cane production. This not only hampers investment in the sector but also creates a climate of uncertainty for potential investors. Additionally, the lack of continuity in government policies and ecological challenges, such as floods, have also had a detrimental impact on sugar production in the country. Sawyer also highlighted the role of key localities known for their potential in sugar cane production, such as Papalanto in Ogun State. Despite the agricultural prowess of these areas, challenges such as land ownership disputes and ineffective government policies continue to impede the sector's growth. Infrastructure deficiencies further exacerbate the situation, making it difficult to transport produce to the market for processing. These systemic issues are not limited to specific regions but affect sugar production across various states in Nigeria. The interview also delved into the effectiveness of Nigeria's National Sugar Master Plan, which aims to promote backward integration in the sector and reduce reliance on imports. While having a plan in place is a positive step, the execution and impact of the master plan have fallen short of expectations. Key players in the market have faced hurdles such as land disputes, lack of political will, and insufficient compensation for ecological disasters, undermining the plan's objectives. The absence of foreign investment in the sector further complicates the industry's growth trajectory. In conclusion, addressing the challenges facing Nigeria's cane sugar production industry will require concerted efforts to resolve land disputes, improve government policies, enhance infrastructure, and attract foreign investment. Political will and continuity in decision-making are essential to drive the sector towards self-sufficiency and reduce dependence on sugar imports. The success of Nigeria's sugar industry hinges on a strategic and collaborative approach that prioritizes the growth and sustainability of local sugar production.